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First of let’s be clear, a money market account is not an investment account. It’s a safe and secure place to park money very similar to that of a standard savings account offered by a bank, credit union, brokerage and other financial institutions. The main difference with a money market account is that it typically pays a slightly higher interest rate on deposits. The money market account is also insured by the FDIC (Federal Deposit Insurance Corporation) which basically means, if the financial institution goes belly up or bankrupt your money is safe and secured against loss. Money market accounts held at credit unions are insured by NCUA (National Credit Union Administration) and money markets held in brokerage houses are insured by SIPC (securities Investor Protection Corporation) Interest paidInterest is compounded daily and paid monthly unlike regular savings accounts. Advantage of money market account
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