Money Market Accounts

**farminclone** · 09-09-2011, 03:06 PM

I'm looking at moving some money from a regular savings account into a money market account. I'm in college, looking for a little higher rate of return than a regular savings account, but want access to money for purchases needed following graduation.

What are the negatives of money markets? Pretty much what I have found in my research is they are not federally insured, and there is a chance if the institution goes under that you may not get your full principle back. Is that common?

Thanks in advance, let's beat the Hoks!

**dmclone** · 09-09-2011, 03:16 PM

Originally Posted by farminclone

I'm looking at moving some money from a regular savings account into a money market account. I'm in college, looking for a little higher rate of return than a regular savings account, but want access to money for purchases needed following graduation.

What are the negatives of money markets? Pretty much what I have found in my research is they are not federally insured, and there is a chance if the institution goes under that you may not get your full principle back. Is that common?

Thanks in advance, let's beat the Hoks!

I think at this point you'd be just as well off putting it in a savings account.

**dmclone** · 09-09-2011, 03:22 PM

Just as an example, the money I have in my TD Ameritrade automatically goes into a money market account if it's not being invested. The rate is currently 0.00999% and it is FDIC insured.

**GoCubsGo** · 09-09-2011, 04:17 PM

I'm pretty sure MMAs are also FDIC insured up to applicable limits. Have you looked into what interest rate you can get with an MMA? I'd be surprised if it's much higher than a traditional savings account unless there are some sort of liquidity restrictions, such as being able to withdraw only so much at a time or a limited number of transactions.

**CysRage** · 09-09-2011, 04:22 PM

Ally bank has a MMA for .99% APY. It is an online bank account which means they dont have local branches. You are only limited to 6 transactions a month because it is a MMA. But you still get a debit card and your first 50 checks are free. No maintenance fees and no minimum balance. Hope this helps!

**Three4Cy** · 09-09-2011, 04:27 PM

What is the purpose of this money? Is it money you use to live, or just money you have in savings and want it to grow faster? If the money is just in savings and you want to grow it, have you looked at CD's? They are FDIC insured, and offer flexible opening deposit amounts, and terms. The one thing you have to be careful of is watching when they mature, since this is the one time when you can remove the money at no penalty. However, if you need access to your money right away, they are not for you.

**mike4cy** · 09-09-2011, 04:35 PM

Originally Posted by farminclone

I'm looking at moving some money from a regular savings account into a money market account. I'm in college, looking for a little higher rate of return than a regular savings account, but want access to money for purchases needed following graduation.

What are the negatives of money markets? Pretty much what I have found in my research is they are not federally insured, and there is a chance if the institution goes under that you may not get your full principle back. Is that common?

Thanks in advance, let's beat the Hoks!

Honestly, MM accounts are not going to net you much interest right now, and neither is anything else. Your best best is to try some local banks and check out their offers for rewards checking accounts. At one point my bank was offering 4% on a no minimum balance checking account as long as you use e-statements (no more paper statements in the mail) and your debit card as a signature based transaction "x" amount of times per month. I know other banks are doing this as well.

**CySmitty** · 09-09-2011, 04:39 PM

I use Alliant credit union. They aren't really local to anywhere but their savings pays 1.15% right now.

**isuno1fan** · 09-09-2011, 04:40 PM

All rates suck right now...no point in moving your money. MM's used can pay around 4-5% but we need higher interest rates before that needle is going to move and that ain't happening anytime soon.

**Ficklone02** · 09-09-2011, 05:59 PM

Originally Posted by farminclone

I'm looking at moving some money from a regular savings account into a money market account. I'm in college, looking for a little higher rate of return than a regular savings account, but want access to money for purchases needed following graduation.

What are the negatives of money markets? Pretty much what I have found in my research is they are not federally insured, and there is a chance if the institution goes under that you may not get your full principle back. Is that common?

Thanks in advance, let's beat the Hoks!

Get a checking account with West Bank, for only a few small stipulations you can get checking that pays at a rate of 4%.

**jtdoyle1** · 09-09-2011, 07:07 PM

Originally Posted by Ficklone02

Get a checking account with West Bank, for only a few small stipulations you can get checking that pays at a rate of 4%.

According to West Bank's website it's at 3%. Two Rivers Bank has a similar checking account and that gets 3% also.

**tec71** · 09-09-2011, 08:00 PM

You should be trading options. Really make that money grow for you. Sure there's a little more risk than a money market, but odds are the banks and federal government will fail someday too the insurance won't be worth anything anyway.*

*Ignore this advice, and put the money under your mattress.

**jtdoyle1** · 09-09-2011, 09:23 PM

Originally Posted by tec71

You should be trading options. Really make that money grow for you. Sure there's a little more risk than a money market, but odds are the banks and federal government will fail someday too the insurance won't be worth anything anyway.*

*Ignore this advice, and put the money under your mattress.

In that case just use the money to learn Chinese so you can better welcome our Chinese Overlords after WWIII.