High Yield Money Market Account – Compound Interest to Build Riches
Posted on | January 28, 2010 | No Comments
If you are looking to make a significant amount of money over the course of your life it is very important that you understand the concept of compounding interest. When you compound an attractive interest rate over time you will see your money grow very quickly. This is the exact reason that it is a very good idea to try and put your money in a high yield money market account.
A money market account will not give you the best interest on your money but it is much safer than most investments. When you put your money in a 1.5% money market account you know you will get that money. The same cannot be said for most other investments especially stocks and mutual funds. If you put your money in a stock or mutual fund there is a very good chance that you could end up losing some of that money.
Although the interest rate is often not as high as other investments a high yield money market account can be very attractive. At the present time the yields on money market accounts are as high as 1.6% from some national banks. It would be a wise decision to do your research and find out which bank will offer you the highest interest rate on this type of investment vehicle.
Do not limit your search to only national banks. There may be some small community banks that will offer you a higher yield. It would be smart to start with the banks in your local area and see what type of yield they can offer you. Then check out the major banks and see how the two different yields compare.
Author: Mike Garner
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