Banking 101: What is a Money Market Account?

Banking 101

A Money Market Account (sometimes referred to as a Money Market Demand Account or MMDA) is an interest-bearing savings account which has features of a checking account such as check writing privileges and use of a debit card.

While the debit card and checks make access to the funds more flexible than a savings account, Money Market Accounts typically limit the number of “convenient” purchases, withdrawals and transfers allowed from the account each month.  Such “convenient” transactions may include things such as Automated Clearing House (ACH) payments, electronic bill payments, overdraft transfers, checks written to a third party, transfers made by computer/phone/mobile device, etc. There is no limit to withdrawals made at an ATM or in person at a Bank, or to the number of deposits allowed.

These limitations were imposed as part of the Reserve Requirements of Depository Institutions, a regulation referred to as Reg D.  The requirements under Reg D were loosened in 2020 as a result of the COVID pandemic and have not yet been reinstated.  Although these restrictions have been suspended on a federal level, many banks still have the same withdrawal limits in place.

Benefits of a Money Market Account

  • May have higher rates than a typical checking account or savings account
  • Safe account to hold large balance
  • Check writing capabilities
  • Debit/ATM card accessibility
  • Standard FDIC insurance is$250,000 per depositor, per insured bank, for each account ownership category
  • Suitable for short-term savings goals

Why a Money Market May Not Work for You

  • Monthly withdrawal limit makes it less flexible than a checking account
  • May require a high minimum balance to open the account or avoid fees
  • May be subject to a service charge when the balance falls below the minimum balance requirement
  • Rates are generally lower than high-yield savings accounts


To learn about products and services offered by Enterprise Bank including Money Market Accounts, Checking Accounts, and Savings Accounts, please visit If you would like to speak to an Enterprise Banker about opening an account, we invite you to call us at 877-671-2265 or visit one of our convenient branch locations.

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