Who holds alternative market-yield accounts?

This paper examines household liquid asset allocation for the period just prior to the introduction of the money market deposit account. This account, authorized in December 1982, allows depository institutions to offer the competitive equivalent of a money market mutual fund account. Estimates derived from a conditional logit model and data from a household financial services survey indicate that those most likely to have a money market mutual fund account are young, upper income college graduates. Older, non‐metropolitan, and non‐college‐educated households have much stronger ties to depository institutions.