This is just a
twist on a standard bank savings
account. The twist is that the
interest rate changes weekly depending
on what interest rates, in general, are
doing. This is the best place to
put your really liquid money.
("Liquid" means that you can get at the
money very quickly if you need it.)
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Money market
accounts are safe and FDIC insured and
always pay a little more than regular
savings accounts. You can usually
write three checks per month out of
these accounts too. They'll
usually require a minimum balance though
(sometimes $1000) and might give you a
penalty if you drop below. |
Same as with CD's,
if you want to open a money market
account, definitely check around the
Internet for the best rates. But,
make sure it's a good company and that
the account is FDIC insured!
They'll connect the money market account
to your checking account (so you can
move money back and forth as needed) and
you can set it all up from your living
room.
Here are a couple of good ones:
Emigrant Direct and
Virtual Bank
You can
search for the best money market rates using our Google "safe
search" option. Or you can search for a different
topic on Finance FREAK. A new window will open
with your results.
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