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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, commercialand public entities.Through the program, banks can acceptdeposits well above the FDIC-insurance limitfrom any one retail or commercial customer in money market deposits.The funds are then distributed into deposit accounts amongmultiple banks in IDC's Deposit Network.No more than $250,000 can be deposited in any one bank.The advantage of MMAX accounts is that instead of being covered only up to the FDIC deposit-insurance amount, the individual can have more fundsinsured. 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.

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