safer investing option at safest places
money_save
How you would feel if you could find a safer investing option at safest places, covered by insurance and at the same time can yield high upon maturity? You would certainly be pleased to invest, isn't it? Then here you get your answer. Banks are offering a type of savings account called money market accounts.
Banks call it by different product names. Some call them high interest accounts, others call them high yield accounts etc. But they are essentially the same. In effect any savings account which promises an interest rate of 1.25% APY or above can be considered a good one to sign.
These should not be confused for transaction accounts like checking accounts. Money market accounts don't allow customers to perform many free transactions. Banks impose limits on transactions. By maintaining sufficient liquidity banks begin to invest in profitable areas. The returns they get is what gets translated as high returns.
Many US banks like AllyBank, ESBS, American Express etc offer these types of savings. For the purpose of branding and promotion they call these accounts by different names. But you can very well identify these accounts by reading the websites for the rates associated with each product. Some banks offer additional benefits like zero opening balance, less service fees, unlimited or extended number of transactions etc. This way the banks ensure they don't loose potential and new customers.
Recession times have proven the benefits of these accounts. When people were losing money invested in stocks, mutual funds etc., money invested in these accounts stood steady due to the FDIC coverage.
MORE RELATED :
US Money Market Savings Rates.
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