Money Market
January 22nd, 2008
Money market funds provide businesses, financial institutions and governments with short term cash equivalents or financing. People are always looking for top money market rates, best money market rates or highest money market rates. You see banks and financial institutions advertise their best money market accounts to attract customers all the time. There are business money market accounts as well as individual money market accounts. People believe money market accounts are the safest investment accounts so finding the best and top money market rates is their top priority.
Define money market account
A money market account is basically a cash account or fixed income account where you put money into a money market fund and earn a small amount of interest. However, your money is not locked into the money market fund, unlike other fixed income investments and certificates of deposit. You can liquidate the money market funds or accounts any time. Since a money market account is very liquid, the best money market interest rates are still low compared to other fixed income returns.
What are money market funds?
Money market funds are fixed income with short term maturities. The maturity of a money market fund is usually one year or less but if you sell the money market fund today, you are not likely to lose anything. Money market funds are considered the most liquid and safest of all investments, even more so than certificates of deposit.
Treasury bills that trade in the secondary market are examples of money market funds issued by the US government. Treasury bills are considered the safest money market funds but they do not have the top money market rates or best money market rates by any means.
How to find the best money market rates and accounts?
In order to find the top money market rates, you just have to call all banks and finance institutions to see what their highest and best money market rates are. Some money market accounts come with highest money market rates but require a high minimum investments.
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