Money market account rates are controlled by the Federal Reserve, which means the rates are subject to change often. Using a money market interest rate calculator you can find out which banks are offering the best rates along with understanding which banks have lower fees on the account. Money market accounts give you a great opportunity to save your money as they are able to provide you with a higher interest rate than what you will get on a traditional savings account along with many other investment options.
Money Market Account
A money market account has a minimum balance requirement along with some withdrawal limitations on the account as well. The goal is to have you keep your money in the account instead of making multiple withdrawals and other things in order to have the investment grow. Check on the balance requirements for the money market account and calculate in the interest rate to be sure you are getting the best rates. Compare money market account interest rates with several banks in order to get the best return for your investment.
Chasing Rates?
There are a lot of investors that will go around chasing interest rates to try and find the bank with the highest rate. While it is smart to compare rates, getting the highest rate may not always be the best option. Using money market account rates comparison tools you can not only compare rates but you will also be able to find out about the account fees, account restrictions and to check on the FDIC security of the account as well.
Deposit Amount
The higher the money market savings account rates, the higher the deposit requirement. You usually need to be willing to invest a large amount of cash in order to get the best rates. Keep in mind that higher rates could also indicate that the bank may not be insured by the FDIC, leaving you with a risky investment. The rates fluctuate but across the board it seems that most money market accounts will ask for at least $1500 to get an interest rate of 1% or more.
Money market account rates do change often so it helps to check on the closing fee for the account in the event that you decide to move to a new bank. Learn about the reputation of the bank as well to know that you are investing your money with a secure company.
