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By: Ikedi Ani-okoye

Why Money Market Accounts Can Make Sense

CD accounts, will usually have higher interest rates than the best money market rate, which are usually pretty low compared to other financial investments. Rates are often lower, because this type of account will give you access to your money although withdrawals may be restricted per month.

If you are in the investment arena, having a money market account can be a great place to hold your money between investments. People like stockbrokers will usually have a money market account. This type of account is also good for those who just want to make a little bit more money. Rates of interest, are apparently below 1%.

A money market account, is also a good resting place for your money until you find a better investment for it. You may even want to turn your money into a certificate of deposits or Treasury bills, which you can keep for six months or more. The longer your money is held, the higher the interest is going to be, this is a long-term investment technique.

You'll find many banks competing for your custom, especially if you have capital, that they can take advantage of. If you find a better deal from another bank you may want to transfer your money.

If you have been joined with a particular bank for a long time, and you find best money market rate interest at another bank, you may want to discuss this with your bank manager to try and get a higher rate. Asking for more interest, may increase your interest to that of a CD account.