Money Market FDIC

Most of us have heard of traditional types of bank accounts which include checking accounts, savings accounts,certificates of deposit (CDs), and IRA retirement accounts. Banks also may offer what is called a money market deposit FDIC insured accounts, These types of accounts earn interest at a rate set by the bank. The account holder is usually limited to a certain number of transactions within a specified time period. These types of accounts are insured by the FDIC up to $250,000.

What is the difference between a money market FDIC insured account and a money market mutual fund?

A money market FDIC insured is an interest bearing account provided by an FDIC insured banking institution. The interest earned is determined by the financial institution that provides the account. Do not confuse it with a money market mutual fund, which is a mutual fund that invests in short-term CDs Treasury bills, corporate bonds etc. The interest earned is based on earnings on the underlying securities. Both are relatively safe, low risk investments.

What should I look for when choosing a money market FDIC insured?

When it comes to deciding where to open your money market account, consider the follwing:

Is there a high money market minimum deposit requirement?

Are there high money market fees associated with opening and maintaining the account?

Is there a high money market interest rate?

Are there limits on how often you can withdraw money?

Are there high money market limits on how much you can withdraw at one time?

Is the money market FDIC insured?

Is there overdraft protection on the account?

How soon after funds are deposited are they available?

What is FDIC insurance?

FDIC is the Federal Deposit Insurance Corporation. it is an independent agency of the United States government. FDIC insurance protects consumers against the loss of their deposits if an FDIC insured bank or financial institution fails. FDIC insures the depositor up to $250,000 per account and even more in some cases.

Money market accounts are a safe and low risk way to keep your money liquid an earn more interest then a typical checking account. Ask your bank or financial institution what are the rates on money market accounts. There are some relatively high money market account interest rates in the marketplace that you may want to look for.

The information provided in this guide is presented in a non-technical way and is not intended to be a legal advice.

Source; http://hubpages.com/hub/Money-Market-FDIC