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What is the investment advantage and disadvantage of money market mutual funds over Cd's and savings accounts?
Wiki User
∙ 8y ago
Money market mutual funds are safe and extremely liquid. There are usually no fees associated with transactions in money market funds. Most brokerage accounts provide access to money market funds which can be used to park funds from stock or bond sales pending reinvestment. The drawbacks to money market funds are that the interest rate paid is only a fraction of a percent and the money held in brokerage accounts is not insured against loss by the FDIC. CDs and savings accounts offered by banks offer higher rates of interest and are insured against loss by the FDIC.
Wiki User
∙ 8y ago
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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.
Why does a savings account make a better investment than a checking accounts?
Savings accounts earn interest.
What are the diiferent accounts offered at Saga Savings?
Saga Savings offers savings and investment accounts such as cash savings accounts, ISAs and share dealing. It also has retirement accounts such as annuity service, equity release and care funding accounts.
Why is it that saving is equal to investment?
Savings must equal investment because by definition loans (investment that the banks make are taken from savings (bank accounts) from people.
What will Barclays savings products do for a person?
Barclays savings products will help their customers with all of their financial needs. They offer IRAs, traditional savings accounts, CDs, ISAs, and investment savings accounts.
What type of accounts does rainier pacific bank offer?
"The type of accounts the Rainier Pacific Bank offers are Savings accounts, Checking accounts, Investment accounts, online accounts, business saving accounts and high yield savings."
Why do some people invest their savings in the stock market while others put their savings in bank accounts?
The stock market is a much riskier investment but potential for high returns on investment. Bank accounts (checking and savings) are insured up to $100,000 against loss by the FDIC and usually a lower return on investment.
What are the advantages and disadvantages of personal savings?
•Advantage: unlimited, the more you save the more you have to spend •Advantage: You have full control of your personal savings and you decide what to do with it. •Advantage: no interest •Disadvantage: it takes time to save up money • disadvantage: temptation to spend some of your savings is never too far away.
What different types of national savings account are available in the US?
In the US, one of the main types of national savings accounts available are the EASA (The Easy Access Savings Account) it is also a new type of savings & investment ordinary accounts.
What are the disadvantages of using checking accounts?
Many checking accounts do not offer interest on the money in your savings account. This is a disadvantage because the money you put in a savings account will collect interest, where a checking account will not.
What interest rates are offered at Newcastle building society?
Newcastle strives to offer competitive interest rates on home loans,car loans, personal loans, and transaction, investment, and savings accounts. with savings accounts the highest interest rate is 6%, 5.8% for investment accounts, 4.5% for transactional accounts, 8.97% for home loans,
What are the disadvantages of personal savings?
A main disadvantage of personal savings is, in the case of notice accounts for example (Notice Accounts), that your money is often tied up for a specific period of time and cannot be accessed without incurring large penalties. Additionally, if your account does not have a fixed interest rate, the interest rate you are offered can diminish over time, thus lowering the investment return on your savings. Similarly, if you have a fixed interest rate and the basic interest rates rise, you could be earning less on your savings than if you had a variable interest rate.
