Posted on May 8, 2010.
What exactly is a money market account and there is no risk to an opening? I want to see what I can do to earn more interest than a savings account, but I do not want to have everything hidden fees and catches you not to speak of before. All that anyone knows about the safety or dangers of opening it would be greatly appreciated. Thank you in advance.
a™¥ ~ Ash
A money market account is a bank account that pays higher interest than savings account old. The bank may invest in longer-term loans, or loans to high risk, but as long as you are under the FDIC limit at a bank insured by the FDIC, your money is safe. money market accounts may be higher than the minimum savings accounts, and the number of transactions may be limited.
A Money Market Fund is a mutual fund that invests in short-term "paper" - they lend money to the government, corporations or banks and foreign Govts, and they will pay a portion of the interest they receive. In the short term is often only at night but can go up to one year. There are no guarantees gov't so they generally pay more money market accounts (bank-operated). But there was no FDIC insurance. However, the companies behind the money market funds generally guarantee that if you put $ 1, you will be able to withdraw $ 1. If you have less than $ 1, this is called "breaking the buck" and you should come back, say, 95 cents on the dollar. It's the risk: money market funds is as strong as the company behind it.
All money market fund management fees. Your bank also hidden management fees.
If you are a new investor, stick to bank accounts money market until you can train more than yourself. When you're ready for a little more risk, then try to money market funds. Stick with a company nationally known as Schwab, Vanguard, Fidelity, T. Rowe Price - they are all about customer service and stand behind the money market.
Read:
http://en.wikipedia.org/wiki/Money_marke ...
Here is some information about money market investing .. http://www.statefarm.com/bank/bank_accnt ...
http://personal.fidelity.com/products/fu ...
A money market account allows you to invest your money in the stock market.
In a 401K for example, many investment options are free. Some fees when you sell / trade the stock.
The advantage is that you, in the long term, earn more money than any savings account. On the negative side, sometimes you lose money.
If it is a long term plan, so its perfect.
In the short term, there are no good options now.
The fees will be disclosed to you before investing. Start shopping with some investment firms more or ask your bank for investment options.
money market is a chequing account with a brokerage firm. The investments are safe. They pay less than 1% currently. There is a minimum balance, usually 1500
