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How do money market accounts differ from regular savings accounts?
Wiki User
∙ 8y ago
A money market account is very similar in nature to a savings account with the most significant difference being that you often have the ability to write checks from it. Most broker/dealers and mutual fund companies offer money market accounts in some form.
For small balances, a savings account is often more beneficial as some money market accounts can charge substantial fees unless a minimum balance is maintained. Some banks also impose restrictions on the number of withdrawals that are allowed.
Money market funds are stable funds, where if you deposit $1 you will get $1 back - this is known as the "Net Asset Value" (NAV) of the fund.
Be sure before you invest in any money market fund whether it is with your local bank or a broker/dealer or mutual fund that you thoroughly investigate fees, earnings, and whether or not the funds are insured.
Wiki User
∙ 16y ago
Wiki User
∙ 11y agoA money market account works by having money invested like a savings account but getting the interest rates that are in the current money market. It usually requires a higher investment than a regular savings account.
Wiki User
∙ 13y agoThe money market trades mostly in short-term securities that have a maturity of one year or less. These instruments are characterized by high liquidity and typically trade in high denominations
Wiki User
∙ 10y agoA money market savings account is a type of savings account that banks and credit unions offer, just like regular savings accounts, with one difference - the difference is that they usually pay higher interest and have higher minimum balance requirements, and typically only allow three to six withdrawals per month. They also usually allow up to three checks to be written each month.
Wiki User
∙ 14y agoThey work like a regular savings account except they have a minimal balance requirement. They may gain more interest than a normal savings account.
Savings accounts are a great way to save and earn money! I have one, and I deposit money every paycheck into it, usually about 10 dollars. Then every so often, for me 4 times a year, I earn an interest on my income.
Wiki User
∙ 8y agoThe means of determining interest rate.
Money market account interest rates are variable and track the money market. Savings account interest rates are usually fixed.
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How do money accounts differ from regular savings accounts?
The means of determining interest rate. Money market account interest rates are variable and track the money market. Savings account interest rates are usually fixed.
How are money market savings accounts different from traditional ones?
Money market accounts are typically tied to a stock that can rise in price. Regular savings accounts are not.
How are money market savings accounts different from regular savings accounts?
A money market savings account is a special kind of savings account. Money market account holders receive more money on their return. Money markets are secure.
What is a money market account good for?
Money Market accounts are just like having a savings account, only they usually offer a higher interest rate than a normal savings account. Unlike regular savings accounts, Money Market accounts have limitation on how often you can make a withdrawal.
Where can money market savings accounts be found?
Money market savings accounts can be found on online investment sites. Money Market accounts are a type of investment with certain benefits over a savings account.
What kind of interest could I get on money market savings accounts now?
You can get below 0.1% of interest on money market savings accounts now. You can ge the rates at www.PersonalSavings.AmericanExpress.com or www.citibank.com/savings
Does Wells Fargo of Texas offer business savings accounts?
Wells Fargo of Texas offers several types of business savings accounts. These include Business Market Rate Savings Accounts and Business High Yield Savings Accounts.
What types of bank accounts are presently available on the money market?
There are several types of bank accounts available on the money market, including savings accounts, checking accounts, money market accounts (MMA), and certificates of deposit (CDs). Savings accounts offer a higher interest rate than regular checking accounts and are typically used for long-term savings goals. MMAs offer a higher interest rate than traditional savings accounts but may require a higher minimum deposit. CDs are time deposits that lock in the invested funds for a set period with a fixed interest rate.
What are some types of money market accounts offered by Capital One?
Some different types of money market accounts offered by Capital One include Basic Savings Accounts, High-Yield Savings Accounts and Money Market Deposit Accounts. The best interest rates are available on the highest tier accounts.
What kinds of savings accounts are available to be opened at Capital Federal bank branches?
Capitol Federal Bank offers seven different options for savings accounts. These include Statement Savings, Money Market Select Accounts, CDs, Kid's Savings (Blue Bucks), Teen Savings Accounts (Blue Chips, Coverdell Education Savings Accounts, and the Better Savings savings account.
Can money market accounts be used for savings?
Yes, money Market Accounts have often been used for savings. In recent years, they have been paying virtually no interest, so other forms of savings may be more advantageous.
Does every bank offer money market savings accounts to its customers?
Many banks do offer money market savings accounts but not all of them. It is best to check with your current bank about a money market savings account or if your in the market for a bank be sure to ask about this type of account before making your final decision.
