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By: Ikedi Ani-okoye

Your Money Market Accounts

The three main types of savings accounts in the US are, certificate of deposit accounts, money market accounts, and equity savings accounts. To get the highest rate of interest from one of these accounts, you need to open a money market account. When you invest money into this account, you are likely to get the highest rate, which is usually more than 1% per year. There are also some drawbacks to having a money market account.

A limitation, which is usually put on you when you have a money market account, is the amount of transactions that you can carry out. Most money market accounts, will allow you to make transactions, as long as it is not more than six times a month. If for any reason you exceed this limit, they will charge you an additional fee.

Some money market accounts, can be opened without an initial deposit balance, which is not possible with most general savings accounts. Although this is true, money market accounts, do usually give you a balance minimum of $5000. So if your account is below this you can incur charges.

The good thing about a money market account, is that there are no additional fees to pay, as long as you keep your account in good order. Morse single accounts, may charge you a per cycle fee, of eight dollars.