Money Market Account: Safety And Liquidity

The objective of the modern investor is to capitalize on the money they already have. Safe investment is the ultimate goal in this rapidly changing economy. The money market account is one type of investment vehicle for securely holding your money, while waiting for the next big opportunity. The availability of “ready cash” is an absolute necessity.

Modest interest earned with limited withdrawals per month, give the depositor access to their money when there is a need for immediate funds. By maintaining, a minimum balance, funds will remain available and will increase in value if the account remains untouched. Also, maintaining a minimum balance will avoid costly monthly service charges. There are no guarantees with stock or bond markets as had been demonstrated in the last few fiscal quarters, however, the FDIC (Federal Deposit Insurance Corporation) guarantees deposit accounts that meet certain criteria.

Moneymarketaccount.net is a great source of information when it comes to this type of deposit account. Information contained within their pages, will assist prospective depositors in making the right choices when it comes to money market accounts. With APY (annual percentage yield) rates, changing rapidly in the banking industry it is imperative that good money managers choose investment accounts that will best suit their needs. A depositor might want, low minimum balances, maybe a higher yield, or lower bank service charges.

A few of the reasons that a money market account is a good choice for an investor/depositor: safety, liquidity, FDIC insurance (if meeting criteria), no long term investment, and ability to access funds immediately. Even though they are similar to checking or savings accounts, the returns of a money market account far out perform those types of accounts.

Is the financial institution maintaining a good debt to asset ratio? Dividend history can be a key indicator of their financial strength. Is the customer comfortable with the banking service fees? If the services fees associated with the account were too high, the return would mitigate the value of the investment. Would a checking account be a better way? This question will, be answered with another question. Does the depositor need to make few or many withdrawals each month? When a customer takes, all their money out there is no money to earn interest. Financial institutions use money market account deposits to invest in T-bills, CD’s, mutual funds, or other investments. The financial institution’s managers react quickly to market trends thereby getting the greatest return for the dollar. One of the many advantages of a money market account is the ability to deposit into the account in the amount the customer chooses. Searching the website moneymarketaccount.net will yield answers to these and many other questions.

This article cannot answer every question that a depositor may ask; moreover, there are legal implications to any investment vehicle. As with many other investments, there are taxes to consider. Consulting with a tax or legal professionals will in most cases provide answers pertinent to the individual investor that can’t be answered by browsing the pages of moneymarketaccount.net. Any financial decisions should be carefully calculated to ensure full benefit. As J.G. Wentworth would say, “It’s your money…”