1. Money Market Accounts Brandon Lacuesta Money Management Period 6

2. What are Money Market Accounts? Accounts insured by the Federal Government. Accounts insured by the Federal Government. Offers similar services as checking accounts, but transactions are set at a limit. Offers similar services as checking accounts, but transactions are set at a limit. Accounts are able to store money for future investments or money incoming from the sale of previous investments. Accounts are able to store money for future investments or money incoming from the sale of previous investments. Highly safe and “highly liquid” investment, but only offers high interest rates with a higher minimum balance. Highly safe and “highly liquid” investment, but only offers high interest rates with a higher minimum balance.

3. Limits of M.M.A. Federal law and regulation limits money transfers and payments; helps Federal Reserve Bank control inflation. Federal law and regulation limits money transfers and payments; helps Federal Reserve Bank control inflation. Transfers from accounts are limited six per month. Third party payments by check or debit card are limited three per month. Transfers from accounts are limited six per month. Third party payments by check or debit card are limited three per month. Transactions at an ATM machine or the bank are NOT limited. Transactions at an ATM machine or the bank are NOT limited. However, transactions are limited to a third party (i.e. ATM bill payment). However, transactions are limited to a third party (i.e. ATM bill payment). Third party payments by check are limited to three per month. Third party payments by check are limited to three per month. Transfers made through Automated Clearing House System (ACH payments) are counted toward the six- per-month limit. Transfers made through Automated Clearing House System (ACH payments) are counted toward the six- per-month limit. Certain banks may count some ACH payments toward three-per-month third party check limit. Certain banks may count some ACH payments toward three-per-month third party check limit.

4. Risks of M.M.A. You may have to pay for liquidity by receiving less in return from deposit certificates. You may have to pay for liquidity by receiving less in return from deposit certificates. If account falls below minimum required balance or you exceed limited number of transactions, there maybe a penalty to pay. If account falls below minimum required balance or you exceed limited number of transactions, there maybe a penalty to pay.

5. How is Money Made? Money deposited into the account earns interest over time, similar to regular accounts. Money deposited into the account earns interest over time, similar to regular accounts. Interest compounded daily and paid monthly. Interest compounded daily and paid monthly. Note that interest rates vary from each bank. Note that interest rates vary from each bank.

6. Companies to Purchase M.M.A. Charles Schwab – Contact # (800-435-4000). Charles Schwab – Contact # (800-435-4000). Website - https://www.schwab.com/public/sc hwab/home/welcomep.html Website - https://www.schwab.com/public/sc hwab/home/welcomep.html Ally Bank Ally Bank Contact # 1-877-247-ALLY Contact # 1-877-247-ALLY Website - http://www.ally.com/index.html Website - http://www.ally.com/index.html

7. Bibliography "Retirement Planning - Glossary." State Farm Insurance - Auto, Life, Homeowners, & More. Web. 08 Mar. 2010.. "Understanding Money Market Account Limitations." BankingQuestions.com. Web. 08 Mar. 2010.. "Where to Park Your Cash." Fool.com: Stock Investing Advice | Stock Research. Web. 08 Mar. 2010..