Among the types of savings accounts available, money market accounts are the once that promise very high returns on investments. They are called by different names like high yielding accounts. Let us discuss in brief about these accounts.
Money market savings are quite different from other accounts. Annual Percentage Yield (APY) of these accounts are in order of 2% and above. Rate is a variable one and decreases with decreasing monthly balances. The data sheet on rates versus monthly balance should be read carefully before signing an account with the bank.
Though these accounts yield high, there are several drawbacks associated with these banks have an upper limit on the number of ATM or Debit transactions per statement cycle. Typical number of transactions allowed are in the range of six to ten transactions. Any transaction that crosses the limit would be charged with a service fee.
The major advantage of these accounts is the high yield which is comparable to mutual funds or stock market investments. The growing competition among banks has made several banks to increase the rates beyond 2% APY.
Some banks offer bonus rates for the first few months after opening an account. Some banks are also reducing the monthly balance requirements. Increasing interest rates and reducing monthly balance requirements have made these accounts a great choice when thinking about investing.
Almost all banks claim that the high yielding accounts are FDIC insured. This is must and can avoid risks involved in long term investments. FDIC insurances up to a limit of 100,000$ should be safe enough.
Offers for Money Market Rates Accounts are very attractive as far as US banks are concerned. Not only the rates (APY) are attractive, but the monthly balances required to maintain the rates are on the lower side when compared to banks of other countries.
Money Market Savings Rates
For more information, please visit: High Yield Money Market