Could a Money Market Account Help to Secure Your Financial Future?

With the recent melt-down of the world’s financial markets looming fresh in our minds, and plenty of signs still pointing to a continuation, perhaps even a heightening, of economic instability, it is no wonder that more and more people are searching for safer and more reliable solutions for investing their money. But how can you gain confidence in the security of your investments in an increasingly uncertain market?

Contrary to what some financial gurus would have you believe, you don’t have to be an investment wizard to plan your path towards more financial security for you and your loved ones. In fact, there are several ways that you can start building wealth immediately with little risk involved and not much money down. One way that you can get started right now with just a small initial contribution is to invest money in a Money Market Account, also commonly referred to as an MMA.

What is a Money Market Account?

A money market account is an interest-earning deposit account in which interest is normally compounded daily and paid to the account owner month. Although a money market account is officially a savings account, you can make a limited number of withdrawals per statement cycle without penalty. You also get check writing privileges with a money market account, although they will be limited. This way, you can invest your money and earn interest, while still having easy access to those funds.

Banks and credit unions benefit from investors who open money market accounts too. Here’s a simple explanation of how it works. You, the investor decide to open up an MMA and make an initial deposit and the banking entity then pays you interest on that amount. The bank or credit union can then use that money to provide loans to borrowers, charging the borrower a higher interest rate. This way, the bank makes enough money off of the loan to pay you interest and earn money too.

When is the Right Time to Start a Money Market Account?

If you really want to make a safer investment to start building wealth, then the best time to start a money market account is as soon as you are financially able to do so. Unlike money market funds, the majority of money market accounts are either FDIC (for banks) or NCUA (for credit unions) insured, making them a safe long-term, if relatively low-yield, investment. Still, not all money market accounts are created equal. Below are a few tips that will help you choose the best one for you.

Compare Interest Rates

You’ll want to compare interest rates at different financial institutions before you settle on an account. Sometimes financial institutions offer higher interest rates on money market accounts to entice new customers and you can easily take advantage of such an offer. Likewise, some banks and credit unions will reward account holders who deposit larger amounts with corresponding higher interest rates.

Your goal should be to find an account plan that offers a competitive interest rate along with an initial deposit and a balance limit that you are comfortable with. Ideally, the minimum balance should be an amount that you can afford to leave in and add to over time. That way, you can maximize your money market account’s earning potential. Just keep in mind that the interest that you earn is subject to income tax.

Determine Accessibility

A money market account is basically a savings account with some of the same special allowances that regular checking accounts have such as check writing privileges and monthly withdrawals. But there are certain restrictions that apply. Federal regulations rule that users are allowed a maximum of six withdrawals and three check transactions per statement cycle.

Certain financial institutions may have stricter limits, so be sure to check the regulations of each institution first before signing anything. You want to be sure that you select an account that fits your specific needs when it comes to how accessible your money is. Also, be sure to compare the minimum balance required each month, as those amounts may vary significantly from institution to institution.

Check Fees and Service Charges

In addition to differences regarding interest rates and accessibility, be sure to read up on and compare fees and other service charges when selecting a money market account. Certain fees may apply if you go under the required monthly balance. Fees also might be connected to withdrawals and other transactions. These fees and service charges can also vary quite a bit from one financial institution to another.

Ultimately, the question of which money market account is best for you can be answered by knowing your specific needs. It is up to you to decide which factors will be most important in your selection. But educating yourself thoroughly before you decide is the surest way for you to pick the right money market account and be on your way towards a more secure financial future.

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Making your money off of dead soldiers?

I am not saying that it is wrong to make a profit, someone had to do the work it takes to settle things for the deceased. I am talking about companies that hold onto death benefits and do not release them to the families. That is just so wrong. Even if you are short on money due to the recession, no one should be taking advantage of the people who love and protect our country with their lives. They deserve some kind of respect for the role they play and this kind of blatant disregard for their lives makes me sick. It is fraudulent behavior that I wouldn’t even expect from the Grinch or Mr. Scrooge himself.

Here is an article if you want to read more:

It is astonishing to me that health insurance companies can get away with using some of the most dishonest practices I have ever witnessed. Did you know that right now, insurance companies have Berenice saving money? That’s right, they have made their premiums just high enough to be able to be secure in case an atomic bomb hits.
We survive the recession by scrimping and saving, it just doesn’t seem right that they get to just roll on past us. These are the companies that get bailed out. Who was around to bail me out when all the bills came at once? I just want a company that can be trusted. A company that is, ‘worth their salt’ so to speak. I’m just lucky life insurance hasn’t been an issue.

Women cost more, so lets charge them more?

Doesn’t that seem like a little bit of backward thinking? It is already a little bit ridiculous that companies can do gender-based price hikes in car insurance. I do not think it should be allowed to discriminate based on statistics. If you are going to provide insurance, you should provide it fairly, to everyone, for everyone. That is the point of this new healthcare bill, is it not? No discrimination. Everyone gets healthcare?
Women should never be a step behind, and this is forcing them to be in my opinion. How can you say that everyone must have healthcare, we will fine you if you don’t, but Johnny’s premium is going to be lower than yours because we assume he will go to the hospital less. We cannot base risk versus need on simply the gender of an individual in my opinion.
There was an article written in the New York times about this sad, sick practice that insurance providers don’t even try to hide.I encourage you to read it, but I warn you, be ready for a heavy onset of depression at how slowly we learn as a country.

If you are looking for life insurance, check out this site:

When has ‘grandfathering in’ ever made anyone happy?

“Under the health reform law signed in March, health insurance plans must meet a variety of new requirements. But plans that existed before the law was signed can be “grandfathered in,” without necessarily having to meet all the new requirements.”…urance-rules.html

–I get that this will make it easier for the companies, but shouldn’t they have to eventually adjust to the new requirements? I think that there should be a longterm goal in mind of having everyone follow these specifications. Without equality how can we expect anyone to change from their current plans when they aren’t bogged down with specific rules? How can this new plan be successful if not following it is the best option. I guess once everyone over thirty now who has a healthcare plan dies, everything will be in effect. So we are only looking at fifty more years on inequality? Sound fair to you?

Do we need financial reform?

The financial reform bill is no longer in debate. After much deliberation, they are now moving the bill forward to the final vote. This bill would give the government some control in winding down big businesses that are not doing well financially. This idea is supposed to keep us out of another recession, but that isn’t what everyone is thinking. Many don’t think that this bill will be able to stop another financial crisis from happening and think that the bill needs more deliberation. It makes sense to me that if it goes through the next level, then the bill should be able to hold its own in the dire situations in which it would be useful. What is your opinion? Read more about this here:

Mike- if you are tired of being ripped off by high prices and misleading marketing schemes, check out this site.

Why the bail out spelled disaster

Nouriel Roubini, or “Dr. Doom” as he has been dubbed by the media as well as those who have read his economical predictions, has said we are not out of the recession yet. In my opinion, we are just getting our feet wet right now. Americans have got to learn how to spend and save money wisely. Living beyond our means has caused these bail outs of big businesses. Sally Mae and Freddie Mac shouldn’t have been too big to break. Even now, they should be forced to downsize. Companies should not be able to operate above their means without the consequences. The american people live through these consequences while the governments and companies they see on the news are thriving and living above their means. The government encourages us to spend our money by giving us tax rebates to get the market going. The sad thing is that instead of saving their money, people use this “free money” to buy couches and school clothes and barbeque grills.
This new health insurance jump is coming too soon. People cannot afford to spend lots of money on insurance when they are already struggling to make ends meet. Life insurance, health insurance, car insurance, homeowners insurance, everything is important and valuable and you need it, but that is at least $500 dollars out of your pocket a month, not to mention the house note and the utilities. Something has got to change . People, find affordable coverage from smaller companies that you know can sustain your needs. If you are looking for life insurance, this is a good one, if you need another type, let me know and I will help you search for a company that you can trust.