Average Money Market Interest Rates
May 2nd, 2007 by admin
Money market rates are interest rates earned per month on an account called as Money market funds.
According to latest reports here are the current average money market rates:
Type of Money Market Account Interest Rates
$10,000 minimum 4.25%
$25,000 minimum 4.53%
$50,000 minimum 4.94%
Jumbo account 4.95%
Money Market account rates will vary from each bank, cities and states. Interests rates differs because some banks will offer a much higher interest rates to be able to attract more banking customers while other much bigger and more popular banks tend to offer slightly lower interest rates. Be sure to inquire with the bank of your choice before opening a money market account.
Money Market is a form of savings account that is being offered by different banks, credit and loan companies. The main difference between money market account from that of the ordinary savings account is the interest rates earned on money market is much higher. Money markets though requires a depositor a much higher amount of minimum balance and depositors are allowed only between 3 to 6 transactions of withdrawal a month. Money market account also entitles a depositor to make or write a check up to three times per month.
Interests earned on money market funds or accounts are compounded everyday and then given each month. The best thing about the method of compounding the interest rates is that your bank will be paying you interest on your initial savings deposit plus the additional interest rates that you’ve earned previously. The longer the term, the higher that the amount coming from the interests rates will be.
Depositors who want to save their money and at the same time have an opportunity for it to earn more money finds the logic of opening a money market account as a great one. First money market is a safe form of investment. Second it is a liquid form of investment, it means depositors can always get their money at any time and after a couple of business working days. Third, depositors can always manage their money and grab the advantage of the way the interest rates are improving by having their account work well to the movements of the interest rates as dictated by the banking market. And lastly money market accounts are very safe as it is generally insured by the FDIC or the Federal Deposit Insurance Corporation.
Currently many companies, institutions and stores allow customers to pay using their money market account checks. This method allow depositors who maintains a money market account a more convenient and faster way to gain access on their finances and at the same time having that advantage of availing more earnings generated by the money market interest rates.
Money market rates are always much higher than the ordinary savings account rates. Depositors are urged to gladly take advantage of this method of keeping their money and at the same time giving them the power to earn more. It’s a win-win situation that is expected to help individuals to properly save and budget their finances in a meaningful manner.