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.
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
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
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
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
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.