What is a super cash market?

"Super cash market" is a term used to describe some accounts on the money market. The term is not standardized and is more of a marketing phrase than a hard classification. In general, it applies to money market accounts that require high balances and affects favorable dividends. The money market account usually allows up to six selections, such as check or electronic transfer every month. The most famous of these investments are bonds. Some of the income from investment funds interest -made interest payments. Interest payments are sometimes described as dividends.

Super cash market account usually differs from the standard money market account in two ways. First, the minimum required balance can be significantly higher. Although the amounts differ, the "super" designation is usually associated with a balance of at least $ 10,000. As this requirement is enforced, it may vary. In some cases, interest will be developed daily and thus decreased in relation to the number of days when the balance is below the minimum. In other sidesBreath can only make an interest payment if the balance has been a minimum continuously since the last interest payment date.

The second difference is that the super money market account pays a higher interest rate. Precise details can again change extremely. As an example, since 2011, most banks offered rates somewhere between 1.5 and 1.7 times more on the Super Money Market account compared to the standard MONEMY Market Account.

"Super", which is not standardized, potential investors cannot rely on the name itself when selecting the money market account. The details offered will vary depending on the bank. It is worth noting that some banks do not have a superior cash market for some minimum balance or highest interest rate in the extent of the bank's products; These can be offered under a different name, such as the JUMBO money market account.