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Given the current state of the financial markets, it’s rather a foregone conclusion that everyone’s investments have taken a hit. For a number of younger investors, there’s plenty of time to recoup those losses. If there is one simple truth of investing, it’s that when the economy falters and returns diminish, there is always a period of growth that follows. Does this mean that investors should only concentrate on growth over the long term? While growth investing is an important aspect of securing long term returns, there is still something to be said for having the safety provided from a money market account. In fact, ever since the start market crash of 1987, investors have learned the benefits of a balanced approach to investing. So, how can a money market account help balance out investments and provide a counterbalance to the ups and downs of the market? More importantly, what are money market accounts and how are they used?
What is a Money Market Account?A money market account is an account offered by a financial institution or bank where its interest rates are typically higher than a standard savings account. In order to benefit from this higher interest rate, individuals must meet the minimum balance requirements. In some cases the minimum required can be anywhere from $5,000.00 to $30,000.00 or more. Depending upon the type of account, individuals can write checks and make withdrawals. However, to do so often incurs fees and charges that can erode the interest rate accrued from the investment.
How Does a Money Market Account Stabilize Investments?A balance approach to investing includes not only having growth investments like equity and stock ownership in companies, but also secure investments like treasury bills and government & corporate bonds that minimize risk and provide a safe, albeit lower return. A large part of those secure investments include individuals holding a portion of their investments in the form of cash within a money market account. While the interest rate isn’t high, it’s still a consistent return that helps to offset any losses from one year to the next.
When investors look to balance their investments and protect against a down market, they often turn to the security afforded from using a money market account. It’s flexible, simple and straightforward. It’s also easily accessible and allows investors to hold a portion of their investments in cash.
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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.
How do I open a money market account over the Internet?
You can open a money market account over the Internet at https://www.zionsbank.com/isavings_info.jsp - . Another good place to opne an account is www.bankofinternet.com/money-market-savings.aspx
The sum to be forfeited for not meeting account stipulations?
money market account
The Benefits And Disadvantages Of Money Market Savings Accounts?
A money market account is also known as an MMDA. Money market accounts are savings accounts that are offered by financial institutions, credit unions, and banks. These kinds of accounts are federally insured and they offer higher interest rates than traditional savings accounts. Unlike CDs, money market funds can be withdrawn at any time. They are not locked in for a period of time. Money market accounts offer many benefits. Funds can be withdrawn from money market accounts by using checks or debit cards. Many banks, brokerage firms, and mutual fund companies offer money market accounts, so if you shop around, you should be able to find a high-interest rate account. Money market accounts can be used to keep money that is earned from investments or estate settlements. They can also be used to keep funds that will be used for investments in the future. Keep in mind that there are some disadvantages that are associated with money market accounts. You can only make a certain number of transactions with money market accounts each month, usually six or less. In order to receive a high interest rate, many banks and financial institutions require a minimum balance of $500 or more. A money market account is an excellent option for investors or retirees that want to store their money and earn a high interest rate. Many people open money market accounts because of the security and flexibility they provide. If you keep $1,000 or more in a regular savings account, you are probably not earning much in interest, so you should consider opening a money market account. You will still have access to your money if you need it for any reason, and you will earn double or triple the interest that you are earning now, so opening an account is worth it. Shop around and compare interest rates with several financial institutions until you find a money market account that satisfies your needs.
What is the going interest rate for a corporate money market account today?
The going interest rate for a corporate money market account varies from .25% to .70% depending on the exact account you open and the amount of money in that account. Most Money Market Accounts pay at less than 3% currently. For going rates check bankrate.com
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 type of savings account?
money market account
How do I open a money market account over the Internet?
You can open a money market account over the Internet at https://www.zionsbank.com/isavings_info.jsp - . Another good place to opne an account is www.bankofinternet.com/money-market-savings.aspx
What are money market accounts?
Money market account is an account that deal with financial matters in the money markets. Money market account usually requires a higher minimum balance or higher rate of interest in order for one to earn interest on the deposit money.
What are the advantages and disadvantages of a money market account?
A money market account is like a savings account. The disadvantage is that there will not be much interest or return. The advantage is , subject to the restrictions stated when you open the account, you can quickly get all your money out.
What is best a money market account or savings account?
madhu
How do you roll over your investments?
To roll investments into an IRA, one will need to first open an IRA account. Then, simply contact the company who is in charge of the investments and request that they roll the money into the IRA account. They will need certain information: such as your contact information and account numbers in order to do so.
Characteristics of good money market?
This depends on the type of money market one chooses to invest in some are low risk others are moderate and the most aggressive interest earning come with a high risk for the investor. Low risks are just a little safe bump up from a regular savings account - with slightly higher interest earnings as the risk of investments are tend have a higher grade of securities and the fees if do apply very low. Moderate performing money markets usually generate it's interest from stocks, bonds and investments but the risk is more out weighted by more solid performing stable revenue generating investments. Aggressive Money market accounts tend to invest more heavily into high risk investments but have higher grade returns. There is also these types out of these the Money Market Savings account which permits usually up to 3 withdraws per quarter and the Money Market Checking Account that permits up to 6 with draws per quarter. The final a Mutual Money Market investment account which is investing or pooling money with others into a portfolio of investments for a return that can be only withdrawn far less and less often. Features for the best, one looks into is selecting one that suits ones need to access their money, what level of risk you desire to take, the ratings of the investments pertaining to the money market and the marketing managers ratings. Then one evaluates any fees that may apply to manage these accounts if high with low revenue returns or one cans also obtain independent evaluation reports on money market performance ranking all these issues together. Desired usually has low to well moderate fees, a good rate of return, with investments that have good rankings as well as qualified and well evaluated ranked money market managers. The accessibility of the money whether more frequent or infrequent and the minimum volume of investment varies as to suits the economic levels of various investors can be found.
Where can I read about money market checking?
Money Market checking is basically the same as a money market account which sets a certain amount of money you need in your account to get a certain amount interest. You can ask any bank about this function.
What is the meaning of online money market account?
An online money market account is basically putting your bank account online that is invested specifically for market. It would typically have higher interest rates for your savings that a typical bank account would.
What are diversified investments?
This is a choice you have in making investments on how you will invest your hard earned money. Never put all your money into one account so that if one fails you can fall back on the other.
WHAT IS A Another name for a regular savings account?
money market account
