If i deposit 4k in the account. The account has a dividend rate of 0.70 percent and a APY rate of 0.7 percent. There is no term contract for this account through my bank?

Also if someone can tell me how to calculate this myself it would be a help or show how you calculated this amount of money earned

About $28.00, depending on compounding.

The easiest way to figure how much a given percentage rate pays on a sum is to multiply the sum by the interest rate. You just have to make sure you move the interest rate the correct number of places to the right of the decimal point.

Example;

To figure ten percent of one thousand, multiply 1000 X .01 = 100
To figure seven tenths of a percent of one thousand, multiply 1000 X .007 = 7
To figure 2.375% of $345.00, multiply 345 X .02375 = 8.19375

How much money will this money market savings account gain in a year?

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The 3-month treasury bond is at 0.15%. I'm currently earning 1.6% on my money market savings account. Since it is FDIC-insured, its risk isn't substantially higher than that of a treasury bond (let's assume we're talking about amounts less than the $250,000 limit).

So, why would anyone invest in such a treasury bond, when they can earn over 10 times as much in a savings account?

because their fear is centered around their ignorance. Stupid should hurt.

I-bonds are paying 5.64% through this month.

Why would someone invest in 0.15% treasury bonds when FDIC-insured money market savings accounts pay >1.5%?

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As a general rule, would it be safer to have money in a cd (certificate of deposit) or in a money market savings acct? Is there any risk to the latter?

It depends entirely on the issuer. If the institution is FDIC insured, they are safe.

Are CD's safer than Money Market Savings?

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If I am starting with a really low amount like 1000.00, what is beneficial? Or is it even worth it?

Zopa has the best interest rates I've found. They're an online lending and borrowing exchange that operates in the UK, US and Italy. (I am based in the UK.) You've probably noticed that banks take the money you put in a savings account, and pay you around 6%. They then lend that money in the form of loans at much greater rates. Zopa cut out the banks, and let you lend directly to borrowers of good credit rating, so you keep all the interest. You can choose your own rates as well. I'm currently getting 7%-11%pa, and am very satisfied with it.

There's a special offer on at the moment, if you apply via the following link:

http://www.zopa.com/member/The%20Hulk

and lend out more than £500 in the UK, Zopa will give you a complimentary £30. If you're in the US, it should automatically redirect you to the US site, and there should be a similar offer. Have a look at it. It's a really good scheme.

If your time frame is under five years, stick with cash (CDs and money market funds).

Mutual Fund, Stock, Money Market savings, whats the best way to save long term for a down payment on a home?

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Right now i have a checking and savings account. I got about 5k in the checking and the interest is 0.10% and and 3.5K in savings and that interest is 0.25%. They are both premiere so i must have 2.5k in them at all times. An idea i have would be to downgrade my checking account to a normal one and keep like 1k in their and put the rest into a money market savings account because at 2.5 k + the interest rate is 0.50%. The second part of my idea would be to stack that account enough as to where i can then move it to my savings account because at 10k + the interest rate is 1% compared to the money market which is 0.75 % at 10k +. I was jsut wondering if this is a good idea cause im new to the whole finance thing and only 20.

Hi Alex, if you have a job, set up direct deposit with free checking so that you can leave $1 in it and dont pay any service charge. Some banks like HSBC does not charge any fee on thier checking account. check www.bankrate.com, to compare the highest money market high yield, open the account online.

Would it be a good idea to move money from my checking account and create a money market savings account?

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I am clueless? What are the uses? Advice.

Money Market accounts are usually used for short term investments or quick access to funds (emergency funds).

They usually get higher interest than the bank savings/checking accounts. The funds behind them are usually in short term bonds and CD's.

It probably would have been a better investment to put the money into a 529 or UGMA/UTMA (son wouldn't have access to the money till later in life allowing for greater growth).

My son received a Money market savings account for his b-day.?

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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.

What reasons are there to put money into treasury bills, rather than a FDIC-insured money market account?

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I'm hoping someone may have some feedback on the following. I'm considering opening up a money market savings account with a deposit of $10,000 (ten thousand) that offers a .85% annual percentage yield. What would be the interest earned monthly? Please advise what formula I would use. Thanks so much.

Calculating Interest Earned on a Money Market Savings?

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HSBC is currently offering 4.65% and I also know a company currently offering 9.60%

Top 3 Answerer in Business & Finance. (Vote for me)

What is the currently the highest interest rate offered on a money market savings account?

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FDIC insured, easy liquidity

Stability of principal. But the interest rates suck.

What are the advantages of a money market savings account?

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