Online Money Market Accounts

Opening high yield money market accounts is fast becoming the smart savers favorite option for low-risk, fixed income investing that pays. Money markets are trade in short-term securities such as certificates of deposit and U.S. Treasury notes. Not to be confused with money market mutual funds (MMMF) offered by investment companies, bank-issued money market accounts (MMAs) nearly double the interest earned on regular savings accounts, but may restrict the number of withdrawals and require higher minimum deposits. Saving for the future is a necessity and a hedge against uncertain economic times. Traditionally, frugal consumers have relied heavily on long-term retirement funds like Individual Retirement Accounts (IRAs) and 401ks and waited and waited until plans matured, or paid hefty fees for early withdrawals. But high yield MMAs not only earn superior interest, but offer savers greater accessibility to liquid assets. Depositors don't have to wait six months to a year to cash in short term vehicles like certificates of deposit (CD), or wait until age 59 and a half to withdraw retirement monies from long term funds. Online money market accounts give savers access to deposits 24 hours a day, seven days a week, and three hundred and sixty-five days a year.

Earning interest on savings may sound like a relatively modern concept, but the practice is as old as the Bible. A parable in Matthew 25:27 gives an account of a wealthy ruler who entrusted finances to three servants. His expectations were that they would trade the currency in the open market, thereby yielding a high return. He rebuked one servant for being too fearful to invest in the market: "His lord answered and said unto him, Thou wicked and slothful servant, thou knewest that I reap where I sowed not, and gather where I have not strawed: Thou oughtest therefore to have put my money to the exchangers, and then at my coming I should have received mine own with usury" (or interest). While high yield money market accounts carry a certain amount of risk, bank deposits are FDIC insured up to $100,000. Instead of hiding liquid assets in no- or low-interest bearing passbooks, savers would do wise to deposit funds with modern day exchangers to earn the best interest rates available. Banks and financial institutions offer such a large variety of vehicles that there is no reason for consumers of any income bracket not to stow some cash away for a rainy day or an unstable economy. Consumers should search for the vehicle with the least amount of risk, the lowest minimum opening deposit and the highest interest rate.

MMAs are ideal for meeting short term savings goals or having readily available cash for travel expenses, or unexpected dental or medical bills. The beauty of banking with money markets is relatively seamless and effortless transactions. MMAs can be linked to existing checking and passbook savings accounts, making it easy to transfer funds from one account to the other, provide overdraft protection, or simply make electronic deposits. These premium savings accounts are also convenient for depositors who don't want to dip into long term nest eggs, but still want to earn double the interest of a traditional passbook. MMA deposits are invested by banks, credit unions, and mutual funds to earn the best returns. Because of these investments, banks, credit unions and other financial institutions may require up to a 10-day holding period before assets can be withdrawn, or they may require account holders to limit transactions to no more than a half dozen per month. If depositors don't mind delaying withdrawals for a few days, the added interest earnings can be well worth the wait.

High yield money market accounts offering the best rates for savings can be found via an online search of financial websites. Hundreds of money mongers either offer or analyze current rates, which are categorized by state and by savings vehicles. Depositors considering MMAs for higher rates may also encounter higher risks. Interest-bearing MMAs fluctuate on a daily or weekly basis according to a global market and state mandates, so depositors need to carefully monitor fluctuations. Additionally, banks want to offer money markets to account holders who have larger minimum deposits and can maintain higher daily balances. Consumers should choose options which fit reasonably with personal budgetary needs and satisfy bank requirements. Virtual banks offer consumers with online money market accounts higher interest and added flexibility. Once applications and opening deposits have been processed online or in person, account holders can draft checks from MMAs, transfer funds, and make withdrawals and deposits -- all from the comfort of a home or office PC or laptop. Depositors log onto banks' internal websites or use special software to access online money market accounts. Electronic banking statements detailing transactions are also accessed 24/7 online.

While high yield money market accounts promise greater earnings, depositors may incur additional service fees for transactions and funds transfers between three-dimensional banks and cyberspace. Monies moved from virtual banks to physical ones earn no interest while it is being transferred. Potential depositors should investigate what added charges might be incurred in conjunction with an interest-bearing MMA. Over a period of time, hidden service charges and fees could outweigh the benefits of added interest. Potential depositors may consult with banks, credit unions, financial advisors, or investment companies, either online or in person, to ascertain which premium account best suits individual savings goals and fiscal standing. A popular saying admonishes, "Don't put all your eggs in one basket." Wise consumers should consider savings plans which incorporate investment diversity and accessibility, while making provision for short- and long- range financial needs. Online money market accounts can be used in conjunction with a variety of short- and long-term savings vehicles, such as CDs, IRAs, Roth IRAs, 401ks, mutual funds, and regular passbook accounts to provide the broadest range of financial security, regardless of a fluctuating economy.

Highest Money Market Interest Rates

The money market interest rates will yield higher earnings than the traditional and safe savings accounts. When looking for alternatives to the stock market, yet wanting a good return on an investment, investigating money market securities will be worth the time spent. There are many financial tools available today to serve investors in short-term exchanges. Some cash investments are very specialized and not for the average or novice person looking for investment opportunities. There are banks, government enterprises, and financial institutions that trade and swap shares with these cash securities. However, there are investment pools that offer individuals the availability of short term maturities and these pools may have the highest money market interest rates found.

Money markets are cash exchanges that are organized and short-term. Typically, these exchanges or financial deposits are from one day to one year time frames. The most popular maturity period is just for three months. These cash investments offer exchangeability and security to individuals as well as corporations. For the newcomer in the financial exchange environment, this means that there is liquidity, or that investments are convertible. These types of accounts serve to give the cash holder opportunities to make money with any funds that are not currently in use, but may be needed in the near future. For example, if a family had a savings account of $5000 and were planning to build a home in two years, using this money for building costs, this family could invest the $5000 into cash securities and potentially earn a better return rate than the traditional savings account in use. This financial philosophy reasons that using cash can earn additional cash. Interested parties can look around for the highest money market interest rates being offered to make the most of the investment. Again, cash securities will be a safer transaction than the stock exchange.

Cash securities are traded in secondary markets. This is a massive and active exchange environment. There are couple of significant points for to consider when participating in the secondary exchanges. First, the secondary markets will generally allow for participants to sell their short term maturities before the mature date. There will be consequences, but the penalties will be in the interest earned and not in the initial sum invested. Secondly, the secondary market has no specific location. Investing and selling are conducted over the telephone and Internet by financial advisors or a person's banking officer or institutions. Stock brokers will not be needed, but financial advisors with experience should be consulted.

To find the highest money market interest rates, interested parties may begin by speaking with current bankers. Often, once a client or customer is using certain financial services, the bank will make special offers to keep all of a customer's business. Money market interest rates may vary, so a knowledge of the current interest rates being advertised will be good information to be equipped with, especially when negotiating terms with agents. There are several sources that can be utilized when price comparison shopping the various money market interest rates. There are financial magazines and publications that keep up with current trends and rates and also offer great financial advise. Money market interest rates do not move as rapidly as the stock market, but do fluctuate, so there could be changes. Keeping abreast of the latest information will give participants maximum advantages to the greatest short-term earnings potentials.

When looking for the highest money market interest rates and other investment opportunities, perhaps the most important point to remember is that knowledge equates to wisdom, and wisdom equates to prudence. The Bible is very specific about how Christians handle finances and where their guidance comes from. "The law of the wise is a fountain of life, to depart from the snares of death. Good understanding giveth favour: but the way of transgressors is hard. Every prudent man dealeth with knowledge: but a fool layeth open his folly." It will be wise to get as much knowledge about the cash security exchanges as possible, before jumping into it. Taking time to discover the many different avenues of investing will give the seeker not only knowledge, but will also give the one seeking time to let the Lord guide in crucial financial matters.

A complete education on investment strategies can be accomplished online through the Internet. The Internet provides tutorials for cash securities and other financial opportunities. There are web pages that publish the highest money market interest rates available and these services can link browsers to the bank offering these great money market interest rates. Many financial exchanges have become more user friendly with the explosive amount of information that is now available to everyone. Instant information can educate the money market newcomer of the many options for increasing cash earning potential. Log on today and find the knowledge and opportunity for investment.

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