Where to find the Best Money Market Rates

Best Money Market Rates

Are you wondering where to find the best money market? The best money market rates can usually be found online. Rather than going from bank to bank or broker to broker, you have to do is perform a search on the web. Although they will not vary too much between companies that occasionally you can find a rate better than the others.

Your best bet is to find an institution that makes a promotion. Banks and other credit institutions do promotions from time to time, where they offer quarter or half percentage points better in a money market rate just to get your business. Have you ever received a CD in your local bank at a certain pace and then gone back a week later to find signs everywhere and they are promoting a drop better than what you got? This is what you are looking for online.

Naturally, to benefit from a good rate you find online for money market accounts or CDs, you should be familiar with doing business with a company that probably is not located in your state. So if you are a person who only likes to do business with local companies and banks to find the best money market rates may be limited to your own town. If you are one of those people you really need to know that your money market funds is just as safe with a company that is available via the Internet, as it is with your local bank. As long as you deposit an amount below the amount secured by FDIC insurance, your money will be fine where it is.

Best Money Market Rates

Best Money Market Rates VS. Best CD Rates

Best Money Market Rates

What is the difference between a CD (certificate of deposit) and a money market account? You often hear these two concepts be around and sometimes you wonder if they are interchangeable.

Actually, a CD and a money market account are two different things. The best money market rates to 99% of the time, be less than the best CD rates. I say 99% because you can always find some promotion somewhere from some institution that can make money to pay higher. But under normal cercomstances, CD will pay the higher rate.

The reason for this is that a CD is a tool in time. When you get a CD, you agree to the loan from the bank your money for a predetermined period. CD's evaluated on their time as 6 months, 1 year, 5 years, and so on. The longer your CD along with the more you invest will determine the rate. The important thing is that you have agreed to not take money out until the CD matures. (Most banks will allow you to take money out, but it would be with a penalty)

A money market account is different in that money is more liquid. Various money market accounts have different rules, but all of them, you have the option of a limited transactions. This means that you money is not "locked up" for the bank to secure loans as easily as a CD. Therefore, the interest rate a bank or other financial institution is willing to pay will be less than a CD. With a money market account the more you have, given higher interest rates will probably be, but you have access to the money without penalty. This means that the best money market rate would still be lower than CD rates

Best Money Market Rates