How Do You Compare Money Market Accounts?
Money market accounts are savings accounts that receive a higher rate of interest for deposits. These types of accounts are available at most banks and credit unions. Money market accounts invest in securities that have high liquidity (quick conversion to cash) and short-term maturity dates. These include certificates of deposits, Treasury Bills, commercial paper and municipal notes. Corporations and financial institutions use the money markets to borrow, lend and trade money for short periods–usually under 1 year. Money markets are considered a safe investment, but there are also differences among them that have to be taken into consideration when opening an account.. Look at the initial minimum deposit requirements. All money market accounts require a deposit of money to open an account. For some, the initial deposit is a few hundred dollars, while many require $1,000 to $2,500. This is an important feature to compare if you have limited funds to invest. Check out the maintenance ba
