Money Market Advantages
The following are Money Market advantages, that are available to their purchasers:
- Money Markets are highly liquid instruments, in that you can withdraw from them at any time, usually without any sort of interest penalty.
There are no finite terms associated with a Money Market instrument. In contrast, a CD (Certificate of Deposit) requires a minimum amount
of duration before you can touch the principal, and imposes interest penalties for early withdrawal.
- Money Market Instruments are almost always FDIC-insured. That means that they are backed by the U.S. government against default,
and are one of the most safest investments available.
- Money Market instruments are extremely easy to set up. Via the internet, they can usually be set-up in a matter of hours or maybe
1 business day at the maximum, if you have a checking account that you can link it to, to initially fund it.
- Today's internet-based Money Markets very often do not require any sort of minimum deposits. That means, you can open an account
with as little as $ 1.
- Internet-based Money Market Instruments generally offer higher yields than their brick-and-mortar (e.g., banks) counterparts. This is
largely due to the reduced overhead necessary to administrate an internet-based instrument.
Best Money Market Rates > Money Market Advantages