Everything I've read seems to suggest MMAs (excluding MMFs) are a better choice. What advantages does a savings account have over a money market account?
You might be reading old books.
Currently savings accounts are paying more interest than money markets.
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When is a savings account better than a money market account?
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They seem similar from what I read. I have a High Interest account and I'm wondering if I should get a money market account as well to be more diversified and earn more money? I am 22 and don't plan on taking any amount of money out at all for at least 10 years to put a substantial down payment on a house if that helps for 'example' purposes. Thanks.
What is the difference b/w a High interest savings account and a money market account?
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Feds have decided to do a bailout on investment firms (AIG) and money market accounts but should I keep my capital in the Money Market Fund?
Yes, that account is covered and is earning more interest than in a savings account
Do not worry. Your money is secure.
If the government did not back up money, everyone would be pulling money out. The world would literarily stop spinning.
Should I reallocate all my funds in my Money Market account into savings due to the bank scare?
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Is transferring savings account money to a money market account a good way to earn money? Are there drawbacks to doing so-especially within the same bank? What kind of interest increase can I expect? Thanks
Individual banks may vary.
Generally, money market accounts earn a higher interest rate, but require a minimum balance. In some cases the interest rate you earn is based upon the balance in the account. On the whole, momey market accounts are a better deal if you're looking at long-term savings.
Your bank may vary. It doesnt hurt to call and talk to a personal banker about your options. They should be able to give you actual interest rates and explain the benefits of a money market account to you.
money mareks pay much more
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EverBank’s latest deal offers a Money Market interest rate that is almost three times the current average and a bonus rate about four times better than usual. The deal also includes $50 extra cash when you open a Money Market account with a deposit of $20,000 or larger.
The first step toward qualifying for the bonus is opening a new Money Market account with EverBank. When you open the account, you will receive 2.25% interest for the first three months and 1.51% interest for the rest of the first year as long as you have less than $50,000 in your account. Considering the current average Money Market interest rate is 0.55%, this isn’t a bad deal.
If you are interested in the cash bonus, you need to make an initial deposit of at least $20,000. To open the account in the first place, you need to deposit at least $1,500. If your average monthly balance ever falls below $5,000, you will be assessed an $8.50 monthly fee until you deposit more money.
Account Details
The EverBank Money Market account has a few extra features, including:
For more information click here.
EverBank Money Market Comes With $50 Cash, 1.51% Interest
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I have $10,000 saved for emergencies. should I put it in a savings account or money market account. tax free or taxable? I'm single and make $100K annually.
BOTH are taxable. MMA's have MUCH higher interest rates, BUT having access to your money is not as easy and often as with a regular savings account. Also, some MMA's are NOT FDIC insured.
Assuming you are Canadian and have access to the new Tax-Free Savings Account, I would put $5,000 in that and the rest in Money Market. You will likely earn a higher rate in MM, but your after-tax rate will be about the same as a high-interest savings account that is tax-free. Then next year when you have additional room in your TFSA, I would transfer another $5,000 from the MM to the TFSA.
savings account is more better because you will earn good interest.
Am I better off with a Money Market Account or Savings account?
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Advantages/Disadvantages?
A money market account typically earns more interest than a regular savings account. And depending on who you bank with, you can get a check book for your money market but you may not be able to access it through the ATM.
Savings accounts are FDIC insured, MMacounts are SIPC insured. Rates are lower and typically compounded quarterly for savings. MM accounts are posted daily. On a practial note, you can probably draw funds from an ATM from your savings account as it is deposited at a bank. MM accounts are mostly held at Brokerages, where a withdrawal requires an instruction to your broker and either issuance of a check or a wire taking a minimum of 24 hours. If you have personal checks on your brokerage MM account, your bank will only put them in for collection as the broker will use its bank to honor your check, figure min. 3 business days.
What is the difference between a traditional savings account and a money market account?
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Savings accounts and money market accounts are fairly similar. The biggest difference is the interest rate structure.
The bank will pay you more interest with larger balances if you put the funds into a money market account (because it is more stable for them so they can loan that money out to other people and make more money). Whereas, for a savings account, the interest rate is not as good (but you can have a lower balance).
Take a look at the rates offered at your bank and then look at how much money you have available to put into the account. There is a breaking point between the rates for the two accounts, at which, you will want to move your money from savings into a money market.
For example, at my bank, the breaking point is $2,000. Since I have more than that available, I put it into a money market account and collect a higher interest rate. If my balance ever has to drop below that amount, I'll move the balance back over to savings.
Can you explain money market savings accounts?
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Shorter-term treasury bills are earning ~1% these days.
My money market savings account is earning ~3.5%. It's been at this rate, or higher, for years. Since it's FDIC-insured, its credit risk isn't substantially more than that of a treasury bill. And, it's more liquid.
So why would someone put their money into treasury bills?
Thanks!
The first thing that comes to my mind in reading your question is that people do not invest in T-Bells for the interest rate. They invest in them for safety and security of principal. The yield or interest is an afterthought.
The second thing that pops in to my mind is there are a lot of investment alternatives you have that are considered to be safe "cash equivalents". These include money markets, auction rate securities, and floating rate funds. >99% of the time these offer a higher return than treasuries, and are as safe. But when the financial system is under severe distress (like now), the differences start to show…
One reason you may wish to invest in US Treasury securities is that FDIC insurance only provides coverage up to a certain amount (use to be $100K and has recently been temporarily raised to $250K). Keep in mind, that if they can raise the insurance limit as easily as they did in the last week, there probably aren't as many barriers as you may think from allowing Congress from changing that when you need it most. That said, a bank savings account is very safe. And the FDIC insurance wrapper gives it an added measure of protection. However, although the FDIC was created by the federal government, it is not the same as BEING the federal government. So, if you follow that line of reasoning, the safest place to let your money rest, is probably the people that own the printing presses. It is a slight difference, but still a difference.
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Please be mindful of today's economic climate. I don't have a ton of money, but I'm trying to be money-smart. I do have the opportunity to get a better-than-average APR and want to know if this would be advantageous for me or if it would be too risky at this time. Thanks!
You could put it in a "CD" (Certificate Deposit) Interest rates are decently high, and it's insured by the FDIC. Go with anything that's insured by the FDIC. As you may know; times are unpredictable and you could loose your well earned cash at any given moment.
It seems like a Certificate Deposit is the safest thing right now.
Seems too risky to me. I''ld just bring it to the bank, and make sure you get it off in time, should the bank go bankrupt.
Or just keep it in an old sock
It is important to balance savings and investments and know what to put your money in. This short article will give you the answer to your question.
http://www.ehow.com/how_4879473_balance-…
Cheers,
Definitely money market. The money will always be traded and it doesn't take a genius to know which money to be in for the best trade.
If you do not need quick access to your money, then the money market is a better place to put money than a savings account which is paying little to no interest.
yes and no divide the money and put half in half
it will be advantageous…go Money Market
Would it be unwise to put my money in a money market account instead of a standard savings account?
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