If you have sold your home and do not currently have plans to purchase another home right away, you will want to store the proceeds from the sale in a safe place. Storing a large amount of cash, such as this in a low interest savings or checking account would not yield the return that you might receive by opening a high interest yield account. And rather than putting the money in a certificate of deposit account with limited access, or investing in the stock market, and risking a major loss of profit, you may want to consider starting a money market account. Lets define the term and offer an explanation of what this type of account offers.

These type of savings is not insured by The FDIC does not offer insurance coverage. However, there has never been an account recorded that lost principal in its entire history. At this time, they are paying about 5% interest. They are different from a certificate of deposit because you have immediate access to your account funds and there is no penalty for early withdraw. Typically, when you have opened your own account, you also are able to write checks at no charge, as long as the checks you write are for at least $500.

If you pay high taxes, you may want to think about opening up a tax free account. Tax free accounts allows you to earn more interest than a basic money market. There are several good companies with which to open your money market account with such as, Vanguard, Fidelity Spartan and USAA.

Money markets are easily accessible and carry a high interest rate among many other great benefits. Opening one today is a great way to save the money yielded from the sale of your home.