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Why is investing in a money market mutual fund a higher risk than investing in a certificate of deposit?
Wiki User
∙ 8y ago
because unlike CDs, money market mutual funds ____________________
are not insured by the FDIC (gradpoint)
Wiki User
∙ 8y ago
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How does the risk involved in a money market mutual fund compare with the risk of a certificate of deposit (CD)?
the risk of the money market mutual fund is slightly greater than that of the CD
Can you compare the difference in benefits between investing money in a money market account versus Certificates of Deposits or bonds at M & T bank?
Money Market accounts have the advantage of being able to withdraw your money whenever you need it. CD or Certificate of Deposit accounts hold a little bit of a higher interest rate, however you have to wait until the term is up before you can withdraw your money (same with bonds). The money market account can give you higher returns where as other bonds, certificates give fixed and less interest. At the same time first one is not risk proof and you can lose money where as second options are fully secured.
What are the advantages of having a Money Market deposit account?
Money Market accounts will typically pay higher interest than a traditional savings account. In comparison to CDs, a Money Market account generally does not tie up your deposit for a set period and withdrawals can be made without penalty.
Are high interest cd worth investing money in?
"Cd stands for certificate of deposit. You loan money to a bank and they repay the loan with interest. However, should you require your money before the time frame, then you will have to pay a penalty. The return on Cd's is usually better than money market accounts. So certainly it would be a good investment if you can afford it."
How is investing money different from saving money?
Investing money will earn you more money. Savings accounts actually are a slight form of an investment, but the return isn't that great. Higher risk investments (such as the stock market), have a much greater return investment-wise.
How does the risk involved in a money market mutual fund compare with the risk of a certificate of deposit?
The risk of the money market mutual fund is slightly greater than that of the CD
How does the risk involved in a money market mutual fund compare with the risk of certificate of deposit?
The risk of the money market mutual fund is slightly greater than that of the CD
what does my money market certificate do for me?
Your money market certificate will be helpful in gettng you a job as a money marketer, as employers will always redily higher someone with a degree over one wihtout.
How does the risk involved in a money market mutual fund compare with the risk of a certificate of deposit (CD)?
the risk of the money market mutual fund is slightly greater than that of the CD
Is a mutual fund a time deposit?
No. A Mutual Fund is nothing but a common pool of money collected from a lot of people which is used by an experienced fund manager who invests the money in the Share market. Not many of us are experienced in investing directly in the Equity market. Mutual funds are a boon to the investor who doesnt have enough knowledge to invest directly in the market but wants to take a risk and gain higher returns from the market.
Can you compare the difference in benefits between investing money in a money market account versus Certificates of Deposits or bonds at M & T bank?
Money Market accounts have the advantage of being able to withdraw your money whenever you need it. CD or Certificate of Deposit accounts hold a little bit of a higher interest rate, however you have to wait until the term is up before you can withdraw your money (same with bonds). The money market account can give you higher returns where as other bonds, certificates give fixed and less interest. At the same time first one is not risk proof and you can lose money where as second options are fully secured.
Is investing in gold better done in a bear market or a bull market?
Gold investing is better done in a bear market. When there is a bull market you want your money in the stock market.
What is the difference between liquid Certificate of Deposit and regular Certificate of Deposit?
Liquid CDs offer consumers the opportunity to withdraw money from the CD without incurring a penalty. The interest rate should be higher than the bank's money market rate, but would usually be lower than a traditional CD of the same term and minimum. Just as with any CD, the terms and conditions are set by the individual banks and can vary widely.
What is the purpose of a money market certificate?
Most people confuse a money market account with certificates of deposit. Money markets are deposit accounts set up like a savings or checking account. However, a minimum balance, and/or limited transactions are commonplace. Interest earned is based on average deposit balance. Therefore, money market certificates are great for large accounts with limited needs for withdrawals.
What schools in NY offer stock market investing 101?
NYSE is a school that offers stock market investing. You can also find online trading epos to teach you about stock market investing. Invest Academy NYC offers investing education as well.
Is there any way to avoid getting an early withdrawal penalty from a certificate of deposit?
If it has a call option that is excercised No, there is no way of avoiding penalties for withdrawing your money early from a Certificate of Deposit. Therefore, if you are uncertain whether you will be able to hold off on withdrawing early, it is best to put your money in a Money Market account.
What are the advantages of having a Money Market deposit account?
Money Market accounts will typically pay higher interest than a traditional savings account. In comparison to CDs, a Money Market account generally does not tie up your deposit for a set period and withdrawals can be made without penalty.
