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FDIC
New York Branch - Money Market Deposit Accounts- What is Money Market Deposit Account (MMDA)
- Interest Rate
- Payment of Interest
- Compounding Method
- Withdrawals: Limits on Transfers
- Designation of Beneficiary
- Application Forms
- A maximum of 6 transfers are permitted during a statement period,
of which not more than three may be by checks to third parties. However,
any numbers of cash withdrawals at our teller counter are permitted
to account holders alone, when they use our special withdrawal forms
which are available at the teller counter in the branch. These withdrawal
forms cannot be transferred to a third person.
- Should more than 3 checks be paid or more than 6 transfers
be effected in a statement period, an excess check writing fee will
be levied per check or transfer.
- Federal regulations require that if you continuously
violate the above prescribed limits on the number of transactions, we
close your account or reclassify your account.
- We also reserve the right to refuse any transaction(s)
which exceed the permissible limit.
- We are required by law to reserve the right
for 7 days advance notice before permitting a withdrawal. However, we
do not currently exercise this right.
Designation of Beneficiary
If you are a consumer, you may designate a beneficiary (or two beneficiaries) of your choice to whom the balance in your account would be payable upon your death. If you designate two beneficiaries, you can also specify the proportion in which they should be paid. In case of joint accounts, the payment to the beneficiary will be made upon the death of all the account holders. Designation of beneficiary can be done at the time of opening an account or any time thereafter. It can also be cancelled or varied. Apply on form DoB for designating beneficiary.
Application Forms
Existing Customers Use form DEP-MC (PDF Word) New Consumers Use form DEP-MC (PDF Word) along with form DEP-1 (PDF Word)
Form DEP-1 has a check list that will enable you to complete the application effortlessly.
Please read the complete disclosure of account terms and fee schedule
in the Customer Manual
before applying for an account. Only the salient features of the Customer
Manual pertaining to this type of account are given below.
What is Money Market Deposit
Account (MMDA)
This is an interest bearing statement account from which withdrawals
can be made in accordance with certain prescribed restrictions. While
there is no minimum deposit required for opening Money Market Accounts,
minimum balances, as follows, are required to be maintained to avoid
monthly service charges:
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An
early withdrawal fee will apply if you close your account within
3 months of opening |
This account is suitable for those who wish to keep their funds liquid and at the same time earn interest on those funds.
Interest Rate
Interest will be paid on this account on a variable rate which can change on a weekly basis depending upon market conditions. The Bank reserves the right to change the rate at any time. There is no limitation as to the percentage amount the interest rate may vary.
Current Annual Percentage Yield (APY) on Money Market Deposit Accounts effective Mar 5, 2008
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Payment of Interest
Interest will accrue on your daily balance. Interest earned during the month will be credited to the account at the close of business on the last calendar day of the month or at the close of business of the following business day, should the last calendar day be a Saturday, Sunday or legal holiday and will be available to you on the first or second business day, respectively, of the following month. Accrued interest will be credited to your account prior to closing the same.
Compounding Method
Your MMD account earns simple interest which accrues daily based on the end-of-the-day balance. Although interest accrues daily, you may not withdraw the earnings until the first business day of the following calendar month, when the same is credited into the account, provided the account is not closed. If not withdrawn, interest is added to and becomes part of the account balance. Since interest is added to your total account balance, any credited interest which remains in the account is, therefore, effectively, compounded monthly.
Withdrawals: Limits on Transfers
