Money market deposit accounts (MMDAs), which is sometimes called money market accounts pay higher interest rates than do some of the checking account. However, the higher the minimum level of deposition, and the transfer from the account limit. MMDAs are designed to save rather than to you need to be prepared, repeated access to funds.
Institutions, if your account balance falls below the minimum requirement is often for a fee. Price is not guaranteed; they change along with market interest rates.
Money market funds
These are invested in a mutual fund companies, banks and the US Treasury issue very short-term debt instruments. When you want to think about your long-term investment to save somewhere in the park, they can be excellent. Because they are SAFE, a lot of people to consider money market funds as their own savings plans permanent part of, and risks to hedge investment market. However, with the benefits of short-term government bonds is almost no, now you will get your money deposited in these accounts almost no interest.
Although $ 1000 is a common minimum initial investment, part of the funds available for the following, almost all to accept a smaller amount of subsequent investments.
Most funds allow you to write checks in your account, although the higher minimum check – usually $ 250 or $ 500 for – let money market fund is not suitable for routine pay the bills. Shares can generally be redeemed at any time.
Asset management account
This type of account, which is provided by brokerage firms and banks can manage your cash, if you have a lot of it, that you can use other services such as account provides a good carrier.
Both full-service and discount brokers offer cash management accounts to stocks, bonds, cash, mutual fund shares who have, or a combination of four customers in their accounts. Customers get a credit line of checking write permission in their money market funds and some other services. The cost of one year from the range of $ 50 to $ 300, but if you have $ 100,000 or more may be discarded in your account.