Presentation on theme: "MONEY MARKET ACCOUNTS Lilia Taua. Money Market Accounts: A savings account that offers the competitive rate of interest (real rate) in exchange for larger-than-normal."— Presentation transcript:
Money Market Accounts: A savings account that offers the competitive rate of interest (real rate) in exchange for larger-than-normal deposits.
Limits Checks written per month Transactions (such as five or less) Maintain certain balance in the account to receive the higher rate of interest.
Investors Banks Central banks Cash management programs Merchant Banks Retail and institutional money market funds Mostly financial institutions and dealers
Making Money Restrictions on transactions allow the investors to take some of the money from each account to invest at higher rates, making more money than you and by this, they are able to raise the interest rates a little higher than normal.
Companies and Getting Started Money Market Account Companies: Bofl Federal Bank American Plus Bank Between $500 and $2,500 initially, to start an account.
Risks FDIC insures money deposited into an account up to a quarter of a million dollars. If investor were to deposit more, and the bank failed, investor would lose money over $250,000. Inflation High Fees The average rate return from the stock market is 8 to 10 percent, which is more than triple average money market returns.