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Bank Savings
- FDIC Insurance
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Savings Accounts
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Money Market Accounts
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Money Market Mutual Funds
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Certificates of Deposit (Time
Deposits)
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Holiday Savings Clubs
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Vacation Savings Clubs
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Treasury Savings Bonds
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Money Market Accounts
Money market
accounts are another form of savings account offered by banks, savings and
loans, credit unions and brokerage firms. Money market accounts normally
have minimum balance requirements and transaction limits. Interest is
usually a market rate and the accounts are generally insured by the FDIC up
to $100,000. Interest rates paid are normally higher then regular savings
accounts. Rates may be tiered; the rate paid on the account is tied to a
specified balance level. Additionally, rates vary among banks and can change
quickly; monitoring the rates is important. Usually, there are no early
withdrawal penalties, but there may be restrictions on withdrawals, as to
the number of monthly transactions. Interest is subject to federal and state
income taxes.
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