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By: Ikedi Ani-okoye

Best Money Market Accounts - Advantages and Disadvantages

Getting a money market account, can be applied for at a bank, credit union or similar financial institutions. To get a lot from your savings, this type of account is beneficial. Usually, money is left in the account for one year or more. You will also need money market account interest rates.

There are both advantages and disadvantages, from having a money market account:

The security aspect

This type of account, will usually be insured. So if there is anything that the financial institution fails to carry out, losing your money. Then you can get back everything you put in as the depositor. This makes the account very safe compared to mutual funds, or stocks.

The minimum transactions

A disadvantage, that you may see with a money market account, is the minimum amount of money that needs to be in that account, which is usually $5000. Compare this with a savings account, which will only need you to have a minimum, of about $50 this is pretty significant.

Fees to maintain the account

As mentioned earlier, the minimum balance in a money market account is required, as long as you have this you will not incur any additional fees. Once your account goes below this, you will be charged extra by the institution in question.

Accessing your money

The good thing about a money market account, is that it is pretty easy to access your funds. This means that your money is quite liquid, in comparison to any certificate of deposit account. Although you need to be aware that there is a restriction on checks, that can be made when using the account.

The interest you can earn

Money market account interest rates, is dependent on how much you are willing to put inside the account. Although, a money market account can give you high interest, it is not as high as a stock, or risky investment.