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When going to a bank to open a new account, many people are confused as to what kind of account they want to offer. Most banks normally offer several different risk free accounts including checking accounts, savings accounts, and certificates of deposit (CD). One other account, which is quite popular with many people, is a money market account. Money market accounts have many attributes that separate them from other types of deposit accounts.
One characteristic of a money market account (MMA) is that the account is guaranteed to not lose money. The account is completely risk free, although the interest rate that is offered by the bank is subject to change. Not only is the account guaranteed to not lose value, but the account is guaranteed and federally backed by the FDIC. This means that even if the bank goes under, the owner of the account will be able to retain their investment. Keep in mind that the FDIC guarantee is only good up to about $250.000. Therefore, if you have more than $250,000, it would be wise to open more than one account.
Another characteristic of a MMA is that they pay higher interest rates than other risk free accounts. Most banks offer checking accounts, savings accounts, and money market accounts. Banks normally offer the highest rates on MMAs. As mentioned earlier, the interest rate offered on a MMA is not guaranteed by the bank, unless they mention it in the agreement.
The third characteristic of an MMA account is that there are often account minimums. Since the MMA offers a higher rate of return, the banks normally require a larger account balance to compensate. Minimum balances vary from just a few hundred dollars up to over $50,000. Normally, the higher the minimum balance, the higher the interest rate. While you are free to withdraw funds at anytime, to keep the account compliant with the account agreement, you may never drop the savings level below the minimum balance. If the balance does drop below the minimum balance, the account holder may incur fees.
What else can I help you with?
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.
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.
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.
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.
Where can one create high yield money market accounts?
One can create high yield money market accounts from websites like WellsFarGo, SallieMae, Ally, Suzeorman, Bank Rate and Nationwide. These are the leading providers of high yield money market accounts.
What is mma checking?
Money market accounts (MMAs) are a form of savings account that resemble checking accounts in several ways.
Where can I learn about money market accounts?
You can learn about money market accounts on different websites such as being specifin "Kern Schools" or " Bank f America". It is best to be specific when searching for money markets.
For which type of bank savings account are you investing money for a certain period of time?
These accounts are known as Money Market Accounts.
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.
Is the Money Market Accounts program a scam?
No, Money Market accounts are not a scam. MMs are actually a very safe investment, offering a small, yet steady, rate of interest.
What is the current earning rate for Money Market accounts?
The average Money Market rate for a deposit under $10,000 is 1.54%.
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
