Everyone wants the best return on their investment, and banks have stepped up to the plate to offer a wide variety of products and services that meet this demand. So how can you find high interest money accounts? Read on for important tips to help you get the most for your money.
A Simple Formula
Essentially, the interest paid on money market works similarly to the interest paid on certificates of deposit. You agree to “loan” the bank your money (by saving it in your money account), and in return, the bank pays you an interest rate based on how much you’re willing to deposit. Unlike a CD, accounts allow you to make a certain number of withdrawals every month. This gives you the freedom and flexibility of having access to your money in the event of an emergency or other need. Because you have the ability to make withdrawals, money market don’t pay as much as CDs (where your money is left alone for a set time period) but the rates are comparable to traditional savings accounts. High interest money accounts are also FDIC insured for member banks, meaning they’re backed by the strength and stability of the U.S. government. This means you are protected up to $250,000, per insured bank, on your investment.
Comparison Shop
The best way to find high interest money market is to comparison shop. Go beyond your local or national bank and do some research online. There are plenty of banking sites which compare accounts, and explain the terms and risks up front – so you’ll know approximately how much of a return to expect. Because the interest rate changes on a daily basis, the bank with the highest rate today could have the lowest rate tomorrow. That’s why it’s important to look beyond the enticing rates and find a bank that has a high star rating for security and safety as well.
Determine the Best Product for Your Needs
If you want the access ease of a checking account while earning the interest of a savings account, a money market account is the ideal, low-risk choice. While CD interest rates are higher, money accounts give you the freedom of accessing your money at any time, for any reason, without paying a penalty for early withdrawal. Plus, the more you invest in a market account, the more you can earn and reach your savings goals. A blend of checking, savings and market is a great way for beginners to safely invest their funds. Money accounts are also beneficial for both short and long term savings goals, as you’ll continue to earn compound interest that has accrued, and have it added to your account every month.