
Best jumbo money market rates for July 2022
Do you have a large amount of cash that needs to stay liquid along with a competitive rate?
Money market is a financial term it pays to understand. Bankrate explains what it is.
The money market is an ideal investment for individuals who want safety and liquidity. Most money market investments offer maturities ranging from one day to one year.
The money market describes a group of financial instruments available to borrowers and investors. Types of money market instruments include:
Money market deposit accounts function similarly to traditional savings and checking accounts. Individuals access the funds with checks, withdrawals, and debit cards up to six times per month. The money is insured by the Federal Deposit Insurance Corp., which minimizes risk.
Money market mutual funds function as investments with small, but not guaranteed, returns. They maintain a net asset value of $1 per share, and they include instruments such as U.S. Treasury securities. Because money market funds aren’t FDIC-insured, they aren’t recommended for risk-averse individuals or anyone who wants an investment for long-term goals.
Because money market accounts earn more interest than checking or savings accounts, they are ideal for anyone who carries high balances in their more traditional accounts. In general, money markets are best for people who carry at least $5,000 in their account and want to take advantage of the earning potential. Benefits of having a money market account include:
Even though money markets are widely considered stable, they aren’t foolproof. For example, during the 2008 credit crisis, some money market mutual funds had net asset values that fell below $1. Anyone who withdrew money during that time lost a percentage of his investments. Other potential downsides include:
Getting a high interest rate isn’t a given. Individuals considering opening a money market account should shop around to find the bank or lending institution with the best interest rates and lowest fees.
Do you have a large amount of cash that needs to stay liquid along with a competitive rate?
What every saver needs to know about money markets accounts.
Follow these simple steps to earn competitive rates on your shorter-term savings.
Looking for a place to park your savings? Here’s why a MMA might appeal.
This type of account can offer a low-risk way to earn a high yield.
Money market accounts have pros and cons as a place to stash cash.
Short answer? Yes. Here’s what you need to know.