A higher federal funds rate often translates to higher rates on consumer deposits such as certificates of deposit (CDs), money market accounts and other types of savings accounts. The best money market accounts are also sitting at 3%-4% APY. This is a great way to earn a return on your money without having to take on too much risk.
Our Top Picks for Best Money Market Accounts of 2023 include Ally Bank (Best for High APY with No Minimum Balance), Sallie Mae (Runner-up for High APY with Low Minimum Balance), Discover Bank (Best for Low Fees), Marcus by Goldman Sachs (Best for High Balance Requirement), and Synchrony Bank (Best for High Interest Rate).
Funds in a money market account can also lose purchasing power due to inflation. One of the best money market accounts can help you avoid this by offering a higher interest rate which offsets the effects of inflation. Additionally, you should look for a money market account that is FDIC-insured, so that your principal is protected in case of a bank failure.
The good news is nearly all banks have insurance through the Federal Deposit Insurance Corporation (FDIC) which protects deposits up to a certain amount. This means that if your money is in a bank account, you can rest assured that your principal is protected. Types of accounts that are covered include: checking accounts, savings accounts, and money market deposit accounts.
When it comes to investing in money market funds, it's important to do your research and find the best one for you. Look for a fund that has a competitive rate of return and is FDIC-insured. Additionally, make sure the fund is reputable and has a good track record of performance.
If your financial advisor had you put your money into any of our top-ranked funds, then they've got you covered. If not, you may need to talk to them about switching to a different fund. Money market funds offer a great way to earn a return on your money without taking on too much risk.
Investing in stocks, bonds and mutual funds can be a great way to earn a return on your money over the long term. However, these investments come with a certain amount of risk and can be volatile in the short term. We spend some time on where the best place to save your money is when you need to keep it safe and secure.
A money market account is a great option for those looking for a safe and secure place to keep their money. Money market accounts offer a competitive rate of return and are typically FDIC-insured. Additionally, the funds in a money market account can’t lose their value due to inflation.
A high-yield savings account is another good option for those looking to earn a return on their money without taking on too much risk. High-yield savings accounts typically offer higher interest rates than a regular savings account and are FDIC-insured.
Whereas with a money market fund or a savings account, you are limited to the amount of money you can deposit and the interest rate you earn. With a certificate of deposit (CD) account, you can lock in an interest rate for a set period of time. CDs offer a fixed rate of return, so you know exactly what you’ll earn on your money.
Investing in money market funds can be a great way to earn a return on your money without taking on too much risk. It’s important to do your research and find the best money market fund for you. Make sure the fund is reputable and has a good track record of performance. Additionally, look for a fund that is FDIC-insured so that your principal is protected in case of a bank failure.