Certificate of Deposit

Archive for the ‘Money Market’ Category

Question: I want to start a mponey market account with my bank (Navy Federal) what is a Money Market account?

How will it benefit me if I start one?

Answer: NOT TRUE. – what he describes is a CD.
A Money Market account looks like a regular savings account.
There may be a requirement for a minimum deposit, but there are no time limits. It is usually held by an investment firm (of the bank) and is not covered under the FDIC. It usually pays a much higher interest rate than a regular bank savings account and varies month to month based on the prime rate. U can withdraw at any time and there is usually a min amount for a withdrawal. Checks are also issued to make withdrawals.
If u have $5000 or more in a regular account think about converting some to a MM account. When ur regular account gets low, just transfer some from MM to it, or pay large bills from it.

Money Market Account

Question: What are Money Market accounts and how much do they earn?

I have a Money Market account, but can’t seem to get enough information on how it all works.

Answer: A Money Market account is basically a savings account with check writing privileges. It typically earns 4%-5% rate of return. It’s great to use as a emergency fund, but not great as a investment vehicle. I would recommend good, growth stock mutual funds as an investment.

Peter Schiff “Learns” the College Economics Educator Jeremy Siegel

Question: Can someone help me by telling me what’s the difference between a CD account and a Money Market Account?

I’m about to enter college in 2 months and I need some basic information on these two things as to what they are, what the differences are, if any, and which would be a better investment, if not both. Thanks!

Answer: A CD stands for Certificate Of Deposit. It could also be known as a time deposit because you get locked in at a certain interest rate for a certain time frame. The catch is you have to keep your money in the account for a certain amount of time to avoid a penalty.
e.g. You put $10,000 in a 3% 9 month CD and an emergency comes up in month 8, you would be penalized on the interest that you earned. If you would like to keep your money liquid(available), this isn’t the product for you. It might require a minimum opening deposit. (The previous bank I worked in required $500)

A Money Market account is a fancy way of saying savings account. These are your bank savings accounts were you have a certain interest rate that isn’t fixed, so it could change whenever rates change. They are liquid and a lot of them do not require a minimum deposit.

Both of them are FDIC insured bank accounts, so they are safe.

I would encourage you to look at a third option which are ONLINE ACCOUNTS. They pay the rates that a CD would pay, but are liquid like a Money Market. If you would like to see competitive rates you coulld go to bankrate.com.

Gold is Free Market Money | Walter Block