Find answers about money market

The money market quite like the bond market deals in fixed-income securities. The only difference between the two is that money markets are forms of debts that mature within a year. Read on to know all about money market, money market yield, market funds and more!

Answered By Isabella Walker | 2 years ago
  • Q: How do you invest in the money market?

    You can invest in money markets by tracking and buying funds. You can get an online brokerage service or a mutual fund company to help you invest some amount into a money market fund. You can invest by either writing a check or making an online transfer. Make sure you do adequate research about the company before investing.

  • Q: Is investing in money market funds safe?

    Money market accounts and money market funds are relatively low risk savings vehicles and are generally considered safe.

  • Q: What are the advantages of money market accounts?

    Investing in money market accounts is always a good idea than using a traditional savings account as it offers competitive rates. Secondly, you can access the money whenever you need it. Money market accounts also do not have any limits on the number of bank transfers per month. What’s more, a money market account also gives you the liberty to move your money if the interest rates drop.

  • Q: What is a market fund?

    Market funds are also called  money market mutual funds that are open-ended and invest in short-term debt securities such as US Treasury bills and commercial paper. These funds are generally regarded as being safe deposits, however they may always not be absolutely risk free.

  • Q: What is a money market account?

    A money market account usually earns a higher amount of interest than a basic savings account. Minimum deposit and balance for these accounts are typically higher than the minimum balance of a basic savings account.

  • Q: What is a money market deposit account?

    Such an account usually pays a higher interest rate than a savings account. This interest-bearing account binds the account holder with limited check-writing ability.

  • Q: What is a money market yield?

    Yield is basically the interest rate earned by investing in securities like negotiating certificate of deposits, treasury bills, municipal notes and the like. This yield is calculated by multiplying a holding period yield by 360-day bank year and divided by the days to maturity. Bank discount yield can also help calculate money market yield.

  • Q: What is the stable NAV for a money market fund?

    The net asset value is the price at which an investor buys or redeems shares. NAV for U.S. money market funds is maintained at a stable $1.00 per share.

  • Q: Which are the best money market accounts of 2017?

    Some of the popular money market accounts include ally money market account, Sallie Mae money market account, Everbank yield pledge money market account among others.

  • Q: Which are the best money market accounts rates to watch out for?

    Some of the best money market account rates range from 1.45%-1.70% APY. The banks that offer such MMA rates include ableBanking, Sallie Mae, Nationwide Bank, Northern Bank Direct, American Express, Capital One 360, and My eBanc.

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