Money Market Account Calculator
Calculate returns and growth for your money market account investments
Calculate Money Market Account Returns
Initial amount to deposit in the money market account
Amount to contribute regularly to the account
Annual interest rate for the money market account
How long you plan to keep money in the account
Example Scenario
Conservative Growth
Starting Balance: $200,000
Monthly Investment: $1,000
Expected Return: 0.5% annually
Time Period: 2 years
Expected Results
Total Deposits: $224,000
Interest Earned: ~$2,135
Final Balance: ~$226,135
Money Market Account Features
Higher Interest Rates
Typically higher than savings accounts
FDIC Insured
Protected up to $250,000
Check Writing
Limited check writing privileges
Transaction Limits
Limited monthly transactions
MMA Tips
Shop around for the best rates - they vary significantly
Consider minimum balance requirements
Watch for fees that can erode your returns
Rates can change - monitor regularly
Good for emergency funds and short-term savings
Understanding Money Market Accounts
What is a Money Market Account?
A Money Market Account (MMA) is a type of savings account that typically offers higher interest rates than traditional savings accounts. Banks invest your money in low-risk, short-term securities like CDs, government bonds, and commercial papers.
Key Benefits
- •Higher interest rates than regular savings accounts
- •FDIC insured up to $250,000
- •Check writing and debit card access
- •Liquidity for short-term needs
How Interest Compounds
FV = PV × (1 + r)^t + PMT × [((1 + r)^n - 1) / r]
- FV: Future Value of the account
- PV: Present Value (starting balance)
- r: Interest rate per period
- t: Number of periods
- PMT: Regular payment amount
- n: Number of payments
Tip: The power of compound interest grows over time, making MMAs excellent for medium-term savings goals.
Important Considerations
Transaction Limits
Federal regulations limit certain types of withdrawals to 6 per month. Exceeding this may result in fees or account conversion.
Minimum Balances
Many MMAs require minimum balances to earn the advertised rate or avoid fees. Check requirements before opening.
Variable Rates
Interest rates can change based on market conditions. Your actual returns may vary from projections.