Liquidity & Balance Sheet
Money Market Deposit Accounts
Also known as MMDAs
Money market deposit accounts (MMDAs) are interest-bearing savings accounts that allow limited transactions and typically pay more than basic savings. They are FDIC-insured bank deposits — not to be confused with money market mutual funds.
Formula
Schedule RC-E reports MMDAs within interest-bearing nontransaction savings deposits. They blend savings-like stability with a higher, more rate-sensitive yield, so they tend to carry a higher deposit beta than plain statement savings.
Why it matters
MMDAs are often where rate-aware but relationship-minded customers park cash. Their balances and pricing are an early read on deposit competition: when rates rise, MMDA rates usually move first among core accounts, nudging up the cost of funds.
How to interpret
Track MMDA balances and rates alongside checking and CDs. Growth in MMDAs at the expense of noninterest-bearing checking is a deposit mix shift that raises funding cost; growth funded from CDs can actually lower it.
Thresholds
| Range | Label | Interpretation |
|---|---|---|
| Stable, well-priced | Strong | Healthy MMDA base at a competitive but contained rate. |
| Normal | Adequate | Typical MMDA contribution to funding. |
| Rate-driven inflows | Watch | Balances chasing rate; funding cost rising. |
| High-beta reliance | Concern | Heavy dependence on rate-sensitive MMDA money. |
Worked example
Frequently asked
Are money market deposit accounts insured?
Yes. MMDAs are bank deposits covered by FDIC insurance up to the standard limits. Money market mutual funds, by contrast, are investment products and are not FDIC-insured.
How do MMDAs differ from regular savings accounts?
MMDAs typically pay a higher, more rate-sensitive yield and allow limited check-writing or transfers. They are reported with savings deposits but tend to have a higher deposit beta.
Sources
- FFIEC Call Report Schedule RC-E (Deposit Liabilities)
See MMDAs across 4,335 US banks
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