Retaining IORR would therefore permit die consolidation of NOW accounts and money market deposit accounts
, and therefore sweep accounts into a single interest-bearing demand deposit category, thereby greatly simplifying monetary statistics.
The funds are typically invested in money market deposit accounts
, money market funds or treasury funds -- historically low yield investments.
In addition to excess, non-operating accounts include short-term time deposits with a maturity of 30 days or less and accounts with transaction limitations, such as money market deposit accounts
. With these deposits there is an assumption that a higher percentage of balances would be removed from the bank in the event of a stress event.
Wall Street offers an abundance of investment products that look almost as safe as the money market deposit accounts
offered at the local bank.
Savings bonds Salerno / Rothbard Govt demand accounts at commercial banks and Salerno / Rothbard the Fed Foreign institutional accounts at comm banks and Salerno the Fed Foreign bank demand accounts at comm banks and Salerno the Fed Money market deposit accounts
Salerno overnight repurchase agreements Salerno overnight eurodollar accounts Salerno Instantaneously redeemable small denomination Rothbard time deposits/CDs (11) Cash surrender value of life insurance policies Rothbard (not term) Excluded from both definitions: Large denomination time deposits
These are NOW accounts that are generally less restrictive than Money Market Deposit Accounts
Other liquidity options include money market deposit accounts
, jumbo CDs, money market mutual funds and fixed-income securities.
While money market mutual funds pay almost nothing (0.21%, on average, in mid-April), several community banks are paying more than 2% on money market deposit accounts
. These accounts are backed by the Federal Deposit Insurance Corp., up to $250,000 per depositor per bank, which is true for all accounts at FDIC-member banks.
Banks are currently required to set aside seven percent of their money market deposit accounts
* Money Market Deposit Accounts
. Investments in interest-earning savings accounts or money market deposit accounts
(MMDA) issued by qualifying institutions are insured by the Federal Deposit Insurance Corp., but only up to $100,000 per institution.
(1) Savings deposits including money market deposit accounts
Some of the largest internet-only banks offer checking, savings, and money market deposit accounts
. To initially fund the accounts, a customer sends a check and then has payments, such as salary payments, direct deposited to provide a continuous flow of funds into the accounts.