How does a high yeild money market work? say 5 percent?

Question

If they get five percent and they put in 10.00 dollars of much will they get, and do they get five percent of there money every month or year or something like that?

Answer 1

It depends on the terms of your money market account. Generally, your 5% will be paid out in multiple periods over a years time. At the end of the year you will have received 5% (less fees and any other expenses). In the case of your 10 bucks, you will have received .50 cents probably paid in multiple periods. Watch out though, many high yield act's will have some fine print involved (balance quotas, withdrawal limitations, etc). Take some time to read the details before sending off your check.

Answer 2

Five percent of ten dollars is 50 cents. Typically the yield is annual...the designation is APY (annual percentage yield.) The thing to look for is how often it is compounded and posted. The more often, the better.

Answer 3

its 5% per year. However that's not high for money market nowadays. U can even get monthly certificate of deposit of 5.25%. At the moment put into short term deposit since they actually paying more than the longer term ones (which is unusual...that's why lots of economists think slowing down will happen in the US in the coming years).

Answer 4

making an investment in treasury charges, certificates of deposit (CDs), and/or commercial paper (unsecured, short-term word issued by capacity of firms). All of those are very short term investments, different than for CDs which usually have longer adulthood dates (3 months to 5 years).

Answer 5

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