Money markets

From Debt Free Dude
Jump to: navigation, search

In the search to compromise between a CD account and a checking account, bankers have created a very unique and useful type of hybrid between the two. The money market type of account is a type of savings account that requires a relatively high minimum balance and also pays a relatively high interest rate.

From the checking account side of the compromise, the money market account also allows a client to make anywhere from 3 to 6 withdrawals per month and/or write 3 to 6 checks on that account per month. This type of account offers a unique advantage in that it allows for a high interest rate and also allows a client to withdraw certain amounts of money without imposing a penalty on that client.

This flexible type of account has offered many people the opportunity to invest that otherwise might not have been able to. The fact that this type of account allows a good interest rate without denying a client complete access to his or her funds makes the money market account a good alternative for those that like the interest rates offered in a CD, but still wish to have a limited access to their deposited money.