DEFINITION of 'Money Market Account Extra - MMAX'

An account structure that provides depositors with the ability to secure FDIC insurance on large deposits that would otherwise exceed the normal insurance limit of $250,000. The MMAX structure allows banks to attract large depositors, including retail, commercial and public entities.

Through the program, banks can accept deposits well above the FDIC-insurance limit from any one retail or commercial customer in money market deposits. The funds are then distributed into deposit accounts among multiple banks in IDC's Deposit Network. No more than $250,000 can be deposited in any one bank.

BREAKING DOWN 'Money Market Account Extra - MMAX'

The advantage of MMAX accounts is that instead of being covered only up to the FDIC deposit-insurance amount, the individual can have more funds insured. For example, if Arthur had $500,000, he could use the MMAX structure to have two banks each hold $250,000; thus, the FDIC would insure the full $500,000.

Depositors can open and contribute to an MMAX account through any of IDC's network banks nationwide. They are limited to a specified number of withdrawals from their MMAX account.

RELATED TERMS
  1. Institutional Deposits Corporation ...

    IDC deposits are deposits made through the Institutional Deposits ...
  2. Bank Failure

    Bank failure is the closing of an insolvent bank by a federal ...
  3. Foreign Deposits

    Foreign deposits are deposits made at, or money put in to, domestic ...
  4. Time Deposit

    A time deposit is a savings account or certificate of deposit ...
  5. Demand Deposit

    A demand deposit is funds held in an account which deposited ...
  6. Risk-Based Deposit Insurance

    Risk-based deposit insurance includes premiums that reflect how ...
Related Articles
  1. Personal Finance

    The History Of The FDIC

    Find out why this corporation was developed and how it protects depositors from bank failure.
  2. Investing

    Mutual Funds Are Not FDIC Insured: Here Is Why

    Find out why mutual funds are not insured by the FDIC, including why the FDIC was created and how to minimize your risk with educated mutual fund investments.
  3. Personal Finance

    Where to Put Your Cash: Call Deposit vs. Time Deposit Accounts

    Time deposit accounts and call deposit accounts allow customers to earn higher interest in exchange for less access to their cash.
  4. Personal Finance

    The 7 Best Places to Put Your Savings

    You work hard to put your money away for the future, but where should you keep it?
  5. Personal Finance

    4 Savings Accounts for Investors

    Curious about the best saving accounts and which ones suit investors?
  6. Small Business

    When Wholesale Funding Goes Bad

    The wholesale funding process is extremely dependent on the credit markets. Find out why it is not always the best option for a business.
  7. Financial Advisor

    Why Banks Don't Need Your Money to Make Loans

    Contrary to the story told in most economics textbooks, banks don't need your money to make loans, but they do want it to make those loans more profitable.
  8. Investing

    You Can Now Open a Goldman Sachs Account With $1

    Perhaps you thought you'd never be able to open a savings account at Goldman Sachs Group Inc., but life is full of surprises. The company now offers an online-only bank for retail customers.
RELATED FAQS
  1. Why is my 401(k) not FDIC-Insured?

    Learn about the Federal Deposit Insurance Corporation (FDIC) and whether its protection extends to 401(k) accounts or just ... Read Answer >>
  2. Does the FDIC cover business accounts?

    Learn what types of business accounts are insured by the FDIC, and find out how much of the deposits made by a business is ... Read Answer >>
  3. Is my IRA or Roth IRA FDIC-Insured?

    Understand how the Federal Deposit Insurance Corporation (FDIC) protects certain individual retirement accounts, and learn ... Read Answer >>
  4. How liquid are money market accounts?

    Understand the characteristics that distinguish money market accounts from checking, savings account and money market funds ... Read Answer >>
Hot Definitions
  1. Inflation

    Inflation is the rate at which prices for goods and services is rising and the worth of currency is dropping.
  2. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  3. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  4. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  5. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  6. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
Trading Center