What Is a Money Market Account? Understanding Its Benefits and Features

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Developing a strong financial plan is important. But knowing where to put your money can be challenging, especially when you don’t have savings goals mind. Money market accounts are a great place to put your money because they offer great interest rates without sacrificing security or liquidity.

We’ve provided a rundown on what money market accounts are, their pros and cons, and what to consider when you’re thinking of opening one. Money market accounts are a type of deposit account. Like savings accounts, they offer you interest on any money you put into the account. However, money market accounts generally give you a higher rate.

Banks can offer you this interest rate because they invest the funds you put in your money market account. “They basically pool together money from multiple investors, and then they invest in high-quality, short-term securities,” says Bobbi Rebell, CFP, founder and CEO of Financial Wellness Strategies…..Story continues...

By: kpulliam@businessinsider.com (Kit Pulliam)

Source: What Is a Money Market Account? Understanding Its Benefits and Features

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