Money Market Accounts
However to reap the benefits of a higher rate of return, financial institutions will expect you to deposit a larger amount of money when opening your account.
Also they will require you to maintain a minimum balance at all times or otherwise you’ll face maintenance fees which will quickly chip away at any money you’ve earned on your savings; something we don’t want!
Money Markets Offer Higher Interest Rates!
When you open a Money Market account it will work just as any other savings account in terms of being able to make deposits whenever you’d like via the teller, direct deposit or the ATM. Your interest, depending upon the bank, will compound your interest monthly or even daily and at the end of the cycle the interest payments will be deposited into your account. This usually happens every month or in some cases quarterly. Those are good things to ask your bank or look for when opening your account.
The beauty of a Money Market account as opposed to something such as a CD is that at anytime you can get access to your account and even close your account if your unhappy with it without having to worry about early withdrawal penalties or any other unwanted hassles.