High Yield
/ Low Yield - It's a question on so many of our minds
today.
How do I turn my savings into something more without
risking serious losses?
Where can I park my assets for a short period of time
and
still receive a decent return all while still having the availability
for liquidity if needed.
As you explore different options for investing your
earnings, a high yield money market account may be a great new home for
some of your finances.
Understand the simplicity in the equation - Low yield
will
create more liquidity with lower rates of returns, as with high yield
there will be more restrictions, limit increase, along with achieving
higher rates of returns.
Some will utilize a balance for establishing boundaries
between the higher and lower rates of return, all depending on each
individuals needs.
Before you consider opening a new high or low-yield MMA,
remember that earning more money comes with a price.
More yield equals more
restrictions
While finding a high-yield money market account can
reward you with an increased interest rate, your account terms can also
weigh you down with rules and regulations. It's important to remember
that money markets do not operate just like free checking accounts.
MMAs carry additional restrictions including:
- Withdrawal limitations --
Federal regulations restrict withdrawals from MMAs to six per month.
- Checkbook closings --
Of those six monthly withdrawals, only three can be written checks.
- Account minimums --
Many high-yield money markets force account holders to maintain a
minimum balance.
If you fail to meet these guidelines, penalty fees can
quickly overshadow any of your potential earnings.
