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Money Market Certificate
and Deposit Account
Source:
Encyclopedia
of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order
it here)
Money
Market Certificate
Certificates
authorized for commercial banks and thrift institutions with minimum denominations
originally at $10,000 and reduced to $2,500; interest rate based on the
26-week U.S. Treasury bill rate.
Money
Market Deposit Account (MMDA)
A
savings account authorized in 1982 under the Depository Institutions Deregulation
Act (Garn-St. Germain Act). MMDAs
are in effect a relatively high-yielding, liquid savings account with
no interest rate ceiling. Rates
are set by the bank. A seven-day
hold is permitted on withdrawals; up to six preauthorized third-party
withdrawals are permitted per month, of which three can be checks.
Regulatory rules phased in minimum deposit requirements.
The original minimum balance requirement of $2,500 was lowered
to $1,000 on January
1, 1985 ,
and eliminated in 1986.
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