Posts Tagged ‘money market rates’

Five Ways to Get the Money Market Rates You Really Want

Five Ways to Get the Money Market Rates You Really Want

Investors in search of a low-risk, high-interest investment don’t need to look any further. A money market account works similarly to a savings account, and offers consumers an easy way to invest money and save for the future. Your initial investment is FDIC-insured, though the interest rate you earn will fluctuate based on current market conditions. If you can find an account with favorable money market rates, you’ll have the opportunity to invest without the danger of losing all your funds in a stock market crash. Consider these five strategies to find great rates for your money market account.

1. Don’t Confuse Money Market Accounts and Money Market Funds
First of all, it’s important to realize that money market accounts and money market funds are two very different types of investments. When you open a money market account, your interest rate will change regularly. However, the amount you deposited into the account will never be affected. With a money market fund, the entire balance of your deposit and the interest you’ve earned is invested into mutual funds. If the market performs poorly, the value of your account can diminish significantly. As you look for money market rates, make sure you’re looking for the right type of account. It won’t matter how much interest you earn if you end up losing it all later because of a poor investment.

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2. Prepare a Substantial Deposit in Advance
Most banks have minimum required deposits for money market accounts. They also categorize accounts based on their total size and initial deposit amounts. Typically, accounts with higher balances and deposits earn better money market rates. If you’re close to the cut-off point for a higher rate, save a little longer so that you can qualify for the next bracket. Of course, don’t leave your money sitting around while you wait. In the meantime, put your cash in a savings account or another short-term investment vehicle.

3. Plan Your Contributions and Research Available Offers
Before choosing a money market account, you should look around at the offers available from multiple banks. The interest rates you’ll earn are generally related to current market conditions, so you’ll often find pretty similar rates at most banks. However, your rates are also calculated based on the amount you’ll be investing. As you shop for rates, be sure to have a budgeted amount prepared, as well as an idea of how much you plan to invest in the future.

4. Watch the Market for the Best Time to Invest
In the months prior to opening a new account, pay close attention to current money market rates and the way the market is performing. Watching the market won’t necessarily tell you what to expect in the future, but it can give you a pretty good indication. This will help you determine the best time to invest so that you can choose a time when rates are high or stable. You’ll also be prepared in case the market experiences a downturn, and you can keep your money working for you in another investment vehicle while you wait to invest in a money market account. Once you open a money market account, remember that your investments will always be protected even if your interest rate falls.

5. Keep Your Account in Good Standing
Once you’ve found an account with great money market rates, be sure to keep your investment in good standing so that you can become eligible for even better rates. Though you can withdraw money from your account, try not to let your balance get too low. When you regularly maintain a high, stable balance, you can become eligible more quickly for higher interest rates.

Where Are the Best Money Market Rates

Where Are the Best Money Market Rates

If you like the flexibility of being able to write checks, enjoy the interest rate of savings accounts and are attracted to the low risk of a certificate of deposit, you can have the best of all worlds with a money market account.  A money market account is a hybrid of some of the best things about certificates of deposit, checking and savings accounts.  Of course, the one question on everyone’s mind is – how can I get the best money market rates?

A Little Research Now Can Pay You Back Later

One of the best places to start when comparing money market rates is the internet.  There are plenty of websites that give you free updates on the latest rates as well as other terms involved in setting up a money market account such as how many checks you can write, what the minimum balance is and so forth.  Oftentimes you can get great money market rates just by comparing some of the top banks.  Some banks offer competitive interest rates that are compounded daily and posted to your account each month, letting you earn while you save. 

Get Access to Your Funds When You Need Them

A key reason that people enjoy money market accounts is because it gives them reasonable access to their funds.  You’re still saving your money and essentially “loaning” it to the bank in exchange for higher money market rates, but you also don’t have to worry about an early withdraw penalty if you need to withdraw some of your money in case of an emergency or other issue.  And, while money market rates aren’t as high as certificates of deposit (because you can withdraw your money at any time), having that flexibility is crucial to many people – especially in uncertain times.

Manage Your Money to Reach Your Savings Goals

Beyond being able to write a limited number of checks each month with your money market account, competitive rates also make it easier for you to reach your savings goals and reward yourself with something special.   You can manage your money market account in much the same way as you do your checking account.  Access funds online, transfer money between accounts and more.  You can even set up your money market account as extra funds for overdraft protection if you want.

If you’re looking for a low-risk alternative to investing in the stock market while getting a competitive return on investment, you may find that money market accounts are a reliable, safe choice that can give you peace of mind and reward you while you save.  Doing a little research on competitive money market rates now can pay you back in the future!

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How to Get the Best Interest Rates on Money Market Accounts

How to Get the Best Interest Rates on Money Market Accounts

Did you know you can make your money work hard for you and earn a return without investing it in the stock market?  Many people are less tolerable of risky investments today, and a quick look at the rollercoaster ride of the stock market easily shows why.  Fortunately, banks are now offering a wide variety of products that give you a competitive return on investment without the associated risk of losing principal.  Money market accounts are one such way to reap the benefits of investing.  Here’s how to get the best interest rates on money market accounts.

How Do Money Market Accounts work?

With a money market account, you agree to save your money in the bank for a set period of time.  This type of account is like a certificate of deposit in a way – but rather than keep your funds tied up with a penalty for early withdrawal, you can write up to six checks on your money market account during a month – giving you access to emergency funds if needed (and without the penalty).  You may think of simply opening up a savings account to have this same kind of flexibility; however generally speaking you’ll get better interest rates on your deposit with a money market account.

Advantages of Money Market Accounts

Money market accounts also offer numerous features you may not even know about.  For example, you can link them to high interest checking accounts for added overdraft protection. You can even access them and transfer money to and from your account, making it easier than ever to manage your finances and create savings goals.  Ideally, to earn the best money market rates you’ll want to keep a minimum balance in your account at all times.  Many banks, offer competitive returns plus all the convenience of online transfers and account management.   It’s worth comparing different offers online in order to get the best interest rates on your savings. 

Keep in mind that since interest rates  can change on a daily basis, if you find a particularly attractive rate with good terms and little to no added fees, it may be worth looking into – as interest rates could change tomorrow.  You can think of money market accounts as a hybrid of many other popular banking products, including checking accounts, savings accounts and CDs.  Overall, if you’re interested in the convenience of writing checks, easy access to your funds when you need them, and knowing that you can get some of the best interest rates on money market accounts, it’s worth doing a little research to make your money go further.

The Difference Between a Money Market Account and a Money Market Fund

The Difference Between a Money Market Account and a Money Market Fund

Many investors do not realize that there are differences between a money market account and a money market fund. While the differences are subtle, they both have faintly distinct levels of risk. Due to this variance in risk, there is also a small difference in the money market rates offered between the two financial products. Investors should have an understanding of what these financial products are. Knowing how banks use these funds will help investors make the most informed decisions about how to allocate their investment capital based on the amount of risk they want to assume.

A money market account is very similar to a savings account at a bank. Most money market deposit accounts typically can have a minimum opening deposit and can provide customers with the ability to write checks against the account. A money market deposit account is virtually a risk free investment because the bank uses Certificates of deposit can provide an investor with a higher rate of return on his or her cash instead of having that asset simply languish in a bank accounthese deposits for cash equivalent investments used in their banking operations. The money market account deposits help the bank offer loans to its customers for homes, cars, and other purchases while providing investors good money market rates of return.

Money market funds carry with it a slightly higher risk profile because of the underlying investments purchased with the deposits in order to earn a higher rate of return. While with money market funds, capital is placed in low risk investments such as Treasuries and short-term debt instruments, these funds are still considered a very safe financial product for investors to own. Most money market funds have a set share price of which does not change. Capital appreciation or dividends earned are either disbursed to investors or invested as new shares of the money market fund.

Money market deposit accounts and money market funds are very similar in design and the type of protection they offer investors. Depending on the amount of risk an investor wants to assume, money market accounts and money market funds offer excellent options for short-term investments with little risk to their principal.

www.globalchange.com Who made money out of sub-prime crisis and the credit crunch? Those who sold property early at the height of the housing market bubble before the US property market crash. Mainly older people. Interest rate control Federal Reserve. Impact of sub-prime crisis on low income groups, younger buyers and shareholders of largest banks with big losses and fall in share prices. Bankers, speculators and shareholder losses. Tightening and loosening of monetary policy in response to inflation of commodities, retail price index and house market indicators. Video by keynote conference speaker Dr Patrick Dixon, Futurist and author of 12 books on global trends. Sub-prime crisis, property prices, crash, housing market, America, US, interest rates, banks, banking, share price, falls, speculation, boom, bust, investor, investment, funds, real estate.
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Use These Tips to Get The Best Money Market Rates

Use These Tips to Get The Best Money Market Rates

Many investors who want a more conservative investment that is still somewhat lucrative want the best money market rates they can find.  It is tough to go through all the available choices to find a money market fund that can keep your cash safe and still provide a reasonably decent return on it. You can find many sources of information on money market rates so the careful investor can always find something that works for him.

The first place to go looking for the best money market rates is your local bank.  Many banks have accounts that offer good rates with relatively small deposits.  These accounts have rules about how often you can make withdrawals without penalty so be sure to read the fine print when opening an account.

Frequently these accounts are not as well advertised as other types of checking or saving accounts so it helps to be specific and ask around when you go into your local branch to set it up.  Also, if your bank provides online banking, then search around for these types of accounts.  Be sure to check other banks in your area for better rates.

The next best source is the Internet. You can also find information on how money markets work.  However, be careful.  Make sure that the funds have the proper backing such as FDIC insurance.  For example, money market deposit accounts at FDIC insured banks are protected up to 0,000.   Other types of money market accounts, like investments in mutual funds, are not insured at all.  If the fund fails, you do not want your money to disappear along with the fund.  

Also, understand that risk versus reward also applies to money markets as well.  If a rate is too good to be true, then make sure you understand how the fund is making its money and what risks the fund manager is taking on.  All of this information can be found in the fund’s prospectus.  Read it carefully because your money depends on it. In the past, the government has bailed out or guaranteed some money market funds.  This should not be taken as a guarantee that this will happen in the future.  Also, understand the fee and cost structure of the fund as these can eat into that good rate.  

Many sites offer to find the best money market rates available. If an investor is looking for something that is a reasonably safe investment but also one that can give good returns as well, it pays to do your shopping and to understand where you are putting your money.

A video to send to those who think the free market produced all the recent economic catastrophes… …and happy new year to all my listeners and subscribers, thanks so much for all your support of Freedomain Radio! www.freedomainradio.com
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How to Find the Highest Money Market Rates

How to Find the Highest Money Market Rates

Because of their liquidity, money market rates are always changing and shifting.  Everyone wants the best return on their investment, so it’s no surprise that finding the highest money market rates is at the top of their list.  Fortunately, it’s easier than ever to get the best rate on your investment, just by following a few simple tips, like the ones discussed below.

How Interest Rates are Calculated

When looking for the competitive money market rates, it pays to know how interest rates are calculated.  Without going into a lot of complicated formulas, money market rates are determined based on how much the bank can conceivably earn by loaning your money out to others at a slightly higher rate of return.  This is how the banks are able to make a small profit and stay in business.  Of course, with money market accounts, you have the option to withdraw your funds at any time without penalty.  That is why money market accounts historically have paid less than CDs (certificates of deposit), where the money is deposited for a set period of time without the opportunity to withdraw.

Shop Around and Compare for Yourself

These days, you aren’t limited by the offers at your local bank or national branch.  Online comparison sites and bank rate review sites give you almost instant ratings on the highest money market rates, letting you easily choose from among some of the most competitive accounts available.  Beyond helping you find the best rates available, these comparison sites can also help you understand the terms of your money market account, including the minimum balance required, the amount of withdrawals you can make in a given month, and so forth.  It’s worth pointing out that you should also look at the rating for security and stability of the bank. 

What Makes a Money Market Account Different than a Savings Account?

Money market accounts are often compared to savings accounts in that they have many similarities.  You earn interest on the money you deposit, you can write checks and have access to your funds at any time.  The differences, however, are important.  For example, you may need to keep a minimum balance in your money market account.  The highest money market rates are given to those who make larger deposits or who aren’t afraid to shoulder some of the risk involved.  When done right, money market accounts will generally earn twice as much as a savings account.   The bottom line for getting the best money market rates is this – keep a minimum balance, deposit as much as you can reasonably afford to, and consider your risk tolerance.  The bank is willing to reward you for being their customer, and with competitive rates and easy access to your funds, a money market account may be the right choice for your needs.

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How to Analyze Money Market Rates

How to Analyze Money Market Rates

A money market account combines the thrill of a short-term, high-yield investment with the security of a savings account, which often intrigues new investors. Much like a savings account, this type of account is accessible – meaning you can transfer money from your checking and savings accounts to it, and you can even write checks against this account. Yet it still offers higher interest – or money market rates – than a standard savings account. If you’re considering this investment tactic, you’ll want to be sure you comprehend the basics about rates on money market accounts:

Understand why money market accounts offer higher rates. This is because unlike with a savings account, the financial institution you’re partnering with is able to use your funds to invest in its own capital. Although you’re in a low-risk situation, the banks may wager your money in higher-risk gambits, such as federal securities and bonds. The bank owes you only the money market rates discussed on top of your initial investment, regardless of how much money it makes (or loses) in this time. Because you give the bank the chance to make money for itself with your money, in turn it pays favorable interest rates for this type of account.

Compare an array of rates from top banks. You’ll want to assess at least five banks’ rates to be sure you’re getting a competitive rate that accurately reflects the current market. Most sites offer calculators that can help you determine how much money you stand to make during the length of an agreement – typically about a year – given the current money market rates.

Know the rates on money market accounts are not the bottom line. In addition to figuring out the best annual yield (with compounded interest over time, if the length of term allows it) and how much money you’ll walk away with, there are other factors to compare. For example, some banks require a higher original deposit than others. Or you may need to sustain a certain minimal balance at all times. Some may have steeper fees if you need to cancel your account or if you accidentally withdraw more times than allowed per term (typically 3-6 per month). Start-up fees may simply be higher at some banks, negating the high money market rates offered. Look at the big picture and total costs before settling for what seems like the best money market account offer.

Ron Paul questions Ben Bernanke – 11/08/2007 – Hearing of the Joint Economic Committee – The Economic Outlook The best way to I could describe the problems that we face here in this country, as well as the problem that the Federal Reserve faces, is that we’re indeed between a rock and a hard place, because we have a serious problem. We don’t talk much about how we got here. We talk about how we’re going to patch it up. The bubble has been burst. We saw what happened after the NASDAQ bubble burst. We don’t ask how it was created. And then we have a housing bubble, and it’s deflating and then spreading. And yet, nobody says, where does it come from? And what do — what is the advice that you generally get? And that is, inflate the currency. They don’t say, inflate the currency. They don’t say, debase the currency. They don’t say, devalue the currency. They don’t say cheat the people who are saved. They say, lower the interest rate. But they never ask you, and I don’t hear you say too often, the only way I can lower interest rates is I have to create more money. I have to lower the discount rate. I have to make it generous. I have to increase reserves. I have to lower the interest rates and fix the interest rates, overnight rates. And the only way you can do this is by increasing the money supply. And I see this as the problem that we don’t want to talk about. Currently, of course, we can’t follow the money supply with M3, but we can follow one of your statistics, which is …

How to Get the Highest Money Market Rates

How to Get the Highest Money Market Rates

Today, consumers are looking for more ways than ever to stretch their dollars even further. You can still find some of the highest money market rates — you just have to know where to look. Here’s how to get the best and most competitive rates on the market today, while ensuring that your investments are stable and secure.

Getting the Most for Your Money

It’s important to know where to go to make your investments grow. For the highest money market rates, it’s a good idea to comparison shop online. There are many bank reviews sites that publish the latest and most competitive rates, allowing consumers to decide which bank offers the most benefits for their money. Obviously, the more you deposit into a money market account, the better your rates will be. Fortunately, shopping online for the best deal means you no longer have to blindly trust the rates your local bank or branch office gives you.

What to Look For in a Money Market Account

Investing your money into a money market account can be a great short-term solution that lets you access your funds while earning a comparable rate to a savings account. Be sure that you look beyond the advertised highest money market rates, and check that the bank is insured by the FDIC, or in the case of a credit union, by the NCUA. This provides you with an added layer of security and stability. Also look for a banking institution with a low minimum deposit around 00. Most importantly, ensure that the bank pays you compound interest which is added to your account every month. This allows your deposit to earn interest every day and help you reach your financial goals even sooner.

Overall, getting the highest money market rates is about more than just numbers. It pays to bank at an institution that can confidently protect your investments while giving you the flexibility to access your funds when you need them. Money market accounts allow you to grow your savings in a low risk environment while giving you the convenience and security you’d expect from any reliable banking institution.

Why You’ll Want Money Market Rates

Why You’ll Want Money Market Rates

If you’re a thoughtful investor, you probably did your research on interest rates before you started looking for ways to save your money. Ideally, you consulted with banks and professionals about what arrangement would work best for your current financial situation, and you probably already have an amount set aside for your future – and that amount is growing. But even if you’re already set up with an independent retirement account and/or savings account, you may be missing out on opportunities to save even more money in the long haul with just a little more risk and a lot more reward by exploring money market rates.

A money market account actually works a lot like the savings account structure that you’re already used to, even if the money market rates set it apart. You can distribute money, such as from a preexisting checking account, into the account freely. Unlike stricter savings setups, you can also move money back into other accounts or withdraw it directly from your money market account. You can even write checks from this account; although they, like other transaction types, may be limited to a certain number per term or annum.
 
So why are money market rates typically so much higher than savings accounts?Think of your current savings account like a little safe where you put your money in stacks and it sits there untouched until you need it again, watched over by bank security. Money market accounts operate differently, because instead of keeping your money in this imaginary bank vault, the bank actually takes it and gets to use it to make its own deposits and investments in the financial market.

Once the bank has made or lost money using yours as a basis, it still needs to repay you the initial sum that you loaned. Just like your savings account, if you’re using a financial agency backed by the Federal Deposit Insurance Corporation or FDIC, this initial amount put into the money market is still guaranteed to you – even if the bank completely mismanages the funds or even goes out of business. You’re still completely protected. It’s this agreement and understanding that your money can be applied but you can still access it and retract it plus interest at maturity that enables banks to offer higher money market rates.

To get started, you may need a higher minimum balance than you would with a savings account. So it makes sense to stay with your startup account until you’ve saved and earned a good amount of money. Even with great money market rates, you still stand to do better if you start with a strong initial investment upon which your growth rates can have the biggest and best impact.

Q&A About Money Market Rates

Q&A About Money Market Rates

A money market account is a type of investment strategy where your money is given to a bank for a predetermined length of time. You are, in turn, offered an interest rate that is your reward for turning over your money to them for that time. These money market rates are based on the principal that you contribute and they’re typically compounded by year; therefore, it’s higher the more you put in and the longer you put it in. Learn more below.

What Types of Money Market Accounts Are There?

You can start a money market account through either a bank or a credit union. The former investment is protected by the Federal Deposit Insurance Corporation (FDIC) while the latter is protected by the National Credit Union Association (NCUA). Although “money market account” may refer to its own singular type of high-yield savings account agreement, depending on the organization with which you work, the phrase can also refer to any number of account types, ranging from bonds to certificates of deposit. This mostly has to do with how the financial institution plans to invest your money and the parameters for how often you can access it. Another thing that differentiates the terminology is whether contributions are tax exempt. Ask your financial advisor for the specifications and definitions on any money market account consideration.

How Can I Get the Best Money Market Rates?

To ensure that you’re getting the best money market rates, you have to shop around. You should not only rely on the advice of your financial advisor or broker, but also do some research on your own. This involves calculating the annual percentage yield (APY) on your investments for the length of time you’re willing to commit your money. This number is the compounded interest each year, rather than the annual percentage rate (APR), which is just the interest percentage without accounting for time. This number should provide a fairly accurate picture of what you stand to gain – but be sure to also consider the fine print. How much money you pay to get started (in many cases, you shouldn’t have to pay anything at all outside of, potentially, a broker’s fee) and how much money you could possibly lose in penalty fees (such as in agreements where you have less flexibility to withdraw your money for free) can factor into the total deal.

Why Are Money Market Rates Higher?

Money market rates are higher than regular savings account rates because the bank is able to apply your funds to the moving financial market. This is a risk that falls squarely on the bank, since they owe you the sum you invested, minus any deductions, plus your interest rate per statement term. Their ability to capitalize on your money is what they are essentially paying you for, in direct contradiction to the way a savings account works.