Money Market Accounts: Benefits & Investment Advantages

Investments in money market accounts can be a painless way to invest money. They have several advantages. Here are just a few to keep in mind when you are looking to invest in a MMA.

Money Market Deposits vs. Money Market Funds

If you are looking for a return on your money, the money market fund account is probably the best bet. You can generally use these accounts like a checking account. The returns on the funds account are generally higher than the deposit accounts. A deposit account can limit the number of transactions. Generally, the limit is no more than six per month. A deposit account is insured by the FDIC while a funds account isn’t.

Investment Terms

With a money market account you are looking at a relatively short investment period, 13 months or less. Since the term is shorter the risk is reduced. The investments are typically safer investments as well, including treasury issues, CD’s, and short term corporate papers.

Less Risk

Since money markets are shorter than other types of investments and the investments are usually more solid, there is less of a risk when you place your money in to a money market account.

Most banks now offer money market account options to their customers. You can simply visit your local branch to get more information on their money market account programs.