1 / 9

Money market accounts

Money market accounts . Lilia Tau’a. Money Market Accounts:. A savings account that offers the competitive rate of interest (real rate) in exchange for larger-than-normal deposits. Limits. Checks written per month Transactions (such as five or less)

michel
Download Presentation

Money market accounts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Money market accounts Lilia Tau’a

  2. Money Market Accounts: • A savings account that offers the competitive rate of interest (real rate) in exchange for larger-than-normal deposits.

  3. Limits • Checks written per month • Transactions (such as five or less) • Maintain certain balance in the account to receive the higher rate of interest.

  4. Investors • Banks • Central banks • Cash management programs • Merchant Banks • Retail and institutional money market funds • Mostly financial institutions and dealers

  5. Making Money • Restrictions on transactions allow the investors to take some of the money from each account to invest at higher rates, making more money than you and by this, they are able to raise the interest rates a little higher than normal.

  6. Companies and Getting Started • Money Market Account Companies: • Bofl Federal Bank • American Plus Bank • Between $500 and $2,500 initially, to start an account.

  7. Risks • FDIC insures money deposited into an account up to a quarter of a million dollars. If investor were to deposit more, and the bank failed, investor would lose money over $250,000. • Inflation • High Fees • The average rate return from the stock market is 8 to 10 percent, which is more than triple average money market returns.

  8. Investment Returns

  9. Resources • http://www.investopedia.com/terms/m/moneymarketaccount.asp#axzz25Aivsh9O • www.depositaccounts.com/moneymarket/business-money-market.html • http://www.getrichslowly.org/blog/2009/07/07/an-introduction-to-money-market-accounts/

More Related