What is the money market account?

In order to understand the accounts and funds of the cash market, it helps to know the difference between them and understand what the "cash market" is to begin. It is simply a general name used to describe the market in which banks and other financial institutions lend, lend and business money, deposit certificates (CD) and other financial tools.

The money market account is essentially a premium account or a high interest savings account. This type of account, also known as MMA, should not be mistaken for the money market. The Fund is an investment strategy with a greater return than a premium savings account. MMA can be opened very simply in almost any bank. The money you keep in such an account will be invested, but the bank or other institutions invest and collect return.

Your money is usually included in investments such as CDs, state treasury accounts or other safe financial tools. Each of them is low risk, short -term investments. Your reward ZAPPENSIFICATION The financial institution to use your money is premiumInterest rate that can be up to twice as high as a typical deposit account.

Like other bank accounts, the money market account from the US bank is insured by the federal company insurance (FDIC) for up to $ 100,000 in dollars. Even if you can find what looks like a better business on the account offered by a large corporation, remember that FDIC does not provide their accounts. If the company submits bankruptcy, you will lose money.

While the money market account makes a decent investment in low -risk risk, keep in mind that because it is an investment, there are some limitations. Your money will not be as liquid as in a regular savings account and usually requires minimal deposit and minimum balance. While you can make your account withdrawals, there is a limit of how many you can make. You cannot select the amount or combined total amount that causes your balance to drop below a minimum without fines.