Why Open a Tiered Money Market Account?
Having a tiered MMA means that the more your money grows, the more you’ll earn. Once your money reaches a certain amount your interest rate will be increased. Regular savings accounts don’t offer this feature. With a tiered account, your interest rate will increase each time the balance rises to a certain level. For instance, you may see an interest rate increase when your balance reaches $2,000. These accounts are a good deal for people who have large amounts of money they don’t want to leave in a low-interest savings account. How to Open an Account You can ask about MMAs at your local bank or shop around for one on the Internet. In many cases you’ll get a higher interest rate with an Internet account. When you deposit your money, the money manager for the MMA usually invests them in T-bills, savings bonds, CDs, or other investments that are considered relatively safe. Many people confuse money market accounts with money market funds. Money market funds are not FDIC-insured and are ba
