What's a good first step to opening a money market account?

Question

Where should I research the best money market account out there and are their reputable resources out there that can help someone who is new to this?

Answer 1

First, are you aware that there is a difference between a money market account (MMA) and a money market fund (MMF)? A money market account is held through a bank, and a money market fund is held through a brokerage company (Vanguard, Fidelity, etc.).

Assuming that you're looking for a MMA, go to www.bankrate.com and that will give you tons of information on the highest yielding financial institutions for not only your own area, but all across the country. Remember when you're looking on that site to double-check the strength of the financial institution (rated with stars on bankrate.com). Your money is insured by the FDIC, but who wants to go through the hassle of having a bank go belly up?

Answer 2

Rates of return. Money market accounts are very often high balance savings accounts. By requiring that a high balance be maintained they can ensure a higher interest rate for the interest income on the account. You can look at the bank you already do business with, or look at competing interest rates with other financial insitutions.

Answer 3

No research or steps needed. No such thing as best as not much better than a bank acct. Still losing vs inflation & taxes. If open acct @ schwab.com funds go straight ino thier money market fund.

Answer 4

Talk with your banker, your insurance person, credit unions...get as much info as you can before deciding...type in 'money markets' in your yahoo search bar, see what happens. Also you need to have a few bucks to play with. :)

Answer 5

http://www.bankrate.com/

it will give you a chart of all the money market accounts.
it will give you information like minimum deposit, interest rate and fees.

Answer 6

research them at local banks.