23 Oct Money Market Accounts
Money market accounts have been around for decades and offer an option for investors looking for a higher rate of interest over a longer time. It usually requires a minimum balance and transactions are limited. There are also fees required, but the variable interest rate that money market accounts earn makes them an attractive investment for people with cash to put away for a while. It is important to understand the requirements and restrictions of your money market account before deciding to open one. Your money will be federally insured, but you will have to decide how often you need to use the account. There is usually a limit to the number of transactions allowed each month.
Check writing and debit cards are available on many money market accounts, but again there may be monthly limits. That’s why it is important to understand every facet of your account before deciding if it is right for you. Money market accounts are subject to inflation so doing some research on the current financial climate will help you know when it is right to open an account. The main difference between a savings account and a money market account is that you will have the opportunity to invest in securities and certificates of deposit so there is a greater long-term advantage.