Money market accounts are offered by banks and credit unions and provide the benefits and features of both savings and checking accounts.
They typically pay higher interest rates than regular savings accounts and may have debit cards and limited check writing rights.
MMAs are suitable for short-term goals, not for long-term financial planning.
Many banks also offer high-yield or high-interest checking accounts, which may pay higher rates than money market accounts, but are subject to additional restrictions.
Alternatives to MMA include high yield savings accounts and certificates of deposit.
The 3-6-3 rule is a slang term for an informal practice in banking, especially in the 1950s, 1960s and 1970s, that was the result of the industry’s uncompetitive and simplistic conditions.
The account balance represents the available funds or present value of an account of a particular financial account, such as a checking, savings or investment account.
The annual equivalent rate (AER) is the actual interest rate on investments, loans or savings accounts that can be obtained after compounding interest.
The bank reconciliation report summarizes the banking and commercial activities by reconciling the organization’s bank account with its financial statements.
A bank run occurs when large groups of depositors withdraw their money from banks at the same time, out of fear that the institution will become insolvent.