Short Term Investments  Short Term investment
 

High Yield Money Market Accounts

 

 

High yield money market accounts are investment vehicles that many people use to grow their money in a safe manner. They are much like any other deposit type account that is offered, except unlike traditional savings accounts, money market accounts (MMA) offer the ability to write checks from the account.

 

 

Typically you will receive a much higher return on your investment in the form of interest than you would with a typical savings account. There are some restrictions that apply to stashing some cash in this type of vehicle.

 

 

 

 

 

 

Restrictions

 

Usually the types of restrictions that apply to high yield money market accounts are concerned with the amount of money that is kept in the account. Most of the restrictions will lay out the amount of money that must be used to make the initial deposit and the amount of money that must stay in the account to avoid fees.

 

There is also a limit to the number of with drawl’ s that can be made each month as well, although the MMA can be used to write checks from, it is not the primary purpose of the account.

 


Benefits of an MMA

 

High yield money market accounts are very low risk instruments. They are the perfect place to put some money that you want to have easy access to that you may want to move to a different vehicle sometime in the near future.

 

Being able to access your money with out fear of penalty is also important, liquidity is a  big plus, especially if you are in a situation where you are unsure whether you may need this money in the near future for a large purchase.

 

They are protected by the FDIC, so safety is really not an issue. This investment vehicle enjoys higher yields than a traditional savings account with just as much protection.

 


Some Precautions

 

Keeping your money safe is important and an MMA certainly will keep your money safe, but there are other vehicles that will help you to grow your money much more efficiently.

 

If you are out to make some money then the high yield money market accounts are probably not for you. They are high yield when compared to other like investment options but the return is relatively low compared to other investment options.

 


Where to Find an MMA

 

Almost all banks offer money market accounts.  There are also many online options for finding the right MMA. Any financial adviser worth their salt will be able direct you to a financial institution that can offer this product. There are many other financial institutions that will also offer high yield money market accounts to their clients.

 

Do some research online to really reach a good understanding about this type of investment option? The more informed you are the better choices you will make. Sometimes looking around before you jump in can really pay off in higher interest rates and much more liberal terms.

 

High yield money market accounts are a great place to keep your money, where you know it will be safe and secure.

 

high yield money market accounts