Earn Great Interest with High-Yield Money Market Accounts
If you’re primary criteria for selecting a type of bank account is favorable interest rates, then one of the best options available will always be high-yield money market accounts. The secret to the usually high yields that such accounts produce is variable interest rates. High yield money market accounts can be a complicated investment though, if you don’t know you’re getting into.
Annual Percentage Yield
Your return on investment will be determined by your Annual Percentage Yield (APY). Typically, high yield money market accounts earn one to two percent more than the national average for savings accounts. The APY is variable which means that the bank may change it at any time.
What you’ll need to get a High Yield Account
A minimum balance is a requirement of virtually all high-yield money market accounts. If your account falls below the minimum, your account will not earn interest. Withdrawals and transactions are strongly discouraged, and hefty fees are slapped on such transactions.
Look Online for the best deals
The institutions that offer the best deals on high-yield money market accounts are usually online banks. All transactions are done online or by phone, as most online banks don’t have brick and mortar branches. The secret to the high rates offered by online banks is that they have very low overhead. High-yield money market accounts are FDIC insured so despite the high yields, they are relatively safe investments.