Earn the Highest Money Market Rates with Your Deposits

2008-09-05 12:59:09

( Financial )



Money market is a kind of cash investment banks offer for their clients. It is just like a certificate of deposit account. For depositors, the difference between the two investments is negligible. Although certificate of deposits are generally safe for the regular depositor, most of them yield lower interest rates compared to high interest money market fund.

You get many advantages from a money market investment. Aside for being a safe choice of investment, you also get to choose the terms. The terms could be as short as a few days or as long as a few years. The most common terms of investment are a few months of investment, though.

You can choose to invest your money on the highest money market rates available. However, looking around may be hard work. But learning the trend of the highest money market rates is worth it if you plan to invest your money for a more rewarding return.

The advantages you get for investing in the highest money market rates is that your money stays liquid so you can use it in case you need to pull out your money for emergency use. You get to invest your money in highest money market rates while it stays relatively safe as a cash investment in the bank.

Typically, there are two kinds of money market investment. You can choose from a fixed interest rate to a fluctuating interest rate. If you choose a fixed interest rate, the terms you get may not be the best money market rate but you don’t have to worry about the fluctuations of the interest rate. If you choose a fluctuating interest rate, then your investment may be a little unstable but at most times, you will earn the highest money market rates. If you choose to invest your money in this kind of investment, you should regularly monitor your investments either personally with your banker or monitor them from an online resource.


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