What is a typical feature of money market deposit accounts regarding minimum balances?

• A. They are commonly subject to monthly maintenance fees regardless of balance
• B. They can be opened with any balance
• C. They are insured by the FDIC
• D. They require higher minimum balances to avoid monthly fees and to earn interest

Answer: (D)

Money market deposit accounts are typically structured to reward maintaining a higher balance. They usually require keeping a minimum balance to avoid monthly maintenance fees and to earn the stated interest. If you stay above that minimum, you’ll avoid fees and benefit from the interest tier; if the balance drops below, fees may apply or the account may earn a lower rate. This setup is what makes a higher minimum balance a defining feature, unlike accounts that can be opened with a tiny balance or that charge fees regardless of balance (and, while FDIC insurance applies, that aspect isn’t about the minimum balance feature).