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By: Ikedi Ani-okoye

The Best Money Market Accounts

Banks, credit unions and other financial institutions can offer you money market savings accounts. If you are interested in putting money aside to earn a lot of savings. Money is kept in these accounts for one year or more.

There are advantages and disadvantages of having a money market account:

The security

Generally accounts are insured to a high amount. This is if the final institution doesn't carry out, what they were supposed to. Meaning the depositor will not be affected. Which means a money market account is safer compared to a mutual funds and stocks account.

The least transaction

One of the disadvantages of having a money market savings accounts, is that you need to have at least $5000 inside it. This differs significantly from a savings account, which you only need to have about $50 in.

Fee to maintain

As long as you have the minimum balance inside your money market account, you will not be charged any additional fees. If you do not maintain a balance on account, and it decreases then you will be charged. Otherwise, the depositor does not need to pay a financial institution any additional fees when managing their account.

Accessibility

With a money market account, it is easy to access your funds. Which makes them much more liquid than a certificate of deposit, that can only be used after some time. When using a money market account, there is a restriction on the check amounts that you can present.

Interest returned

Normally this type of money market account, will have a high amount of interest. The more you put into the account the more you are likely to earn from it. The downside is that it is not as lucrative as a risky investment or stock and shares account.