{"id":71,"date":"2022-03-25T10:47:40","date_gmt":"2022-03-25T10:47:40","guid":{"rendered":"https:\/\/compoundingstacks.com\/?p=71"},"modified":"2022-04-04T14:28:27","modified_gmt":"2022-04-04T14:28:27","slug":"what-is-money-market-accounts-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/compoundingstacks.com\/what-is-money-market-accounts-and-how-does-it-work\/","title":{"rendered":"What Is Money Market Accounts And How Does It Work?"},"content":{"rendered":"\n
Do you want to learn about investment accounts? If you\u2019re new to investing, you\u2019ll probably want to brush up on the different types of accounts available to you. <\/p>\n\n\n\n
One type of investment account is a Money Market Account or MMA. <\/p>\n\n\n\n
If you\u2019re not quite sure what an MMA is or how it works, don\u2019t worry, this article covers everything you need to know about Money Market Accounts and how you can start investing. <\/p>\n\n\n\n
Money Market Account<\/a> (MMA) is a type of investment account offered by banks and other financial institutions. MMA allows investors to earn interest on their deposits.<\/p>\n\n\n\n Money market accounts are similar to savings<\/a> accounts, except they offer higher rates of return. They also allow you to invest in stocks, bonds, mutual funds, ETFs, etc.<\/p>\n\n\n\n There can be two types of MMAs \u2013 Individual Savings Accounts<\/a> or Businesses. We will talk about both the types of Money Market Accounts:<\/p>\n\n\n\n This account has some advantages and disadvantages as well. Its advantage is there is no minimum balance to maintain and its disadvantage is there is no maximum limit on deposit amount. <\/p>\n\n\n\n So if you have more cash lying around and want to save that for the future then this kind of money market account is suitable for you.<\/p>\n\n\n\n A business saver account gives you additional tax benefits. Deposits into these accounts are not subject to income taxes. However, withdrawals from these accounts do get taxed.<\/p>\n\n\n\n1. Individual Savings Account (ISA)<\/strong><\/h3>\n\n\n\n
2. Business Savings Account<\/strong><\/h3>\n\n\n\n
How Does MMA Work?<\/strong><\/h2>\n\n\n\n