FDIC

A money market fund is an open end mutual fund that invests in short term debt securities. Money market funds are also known as principal stability funds. This type of investment is in the money market. The key objective is the conservation of principal, accompanied by humble dividends. Money market funds are often used by financial institutions to store money that is not currently invested; money market funds are highly liquid investments. Most deposits into a Money market fund are not FDIC insured, but the risk still remains to be extremely low. Money market funds are among the safest types of mutual funds because by law they are required to invest in low-risk securities.

Money Market Fund Traits

Money market funds mainly invest in government debt securities. Because the government has the ability to raise taxes in order to pay debt, these funds are considered very safe. Money market funds return an average of 4 to 6 percent a year, which rivals the return of CD's. The biggest risk involved in investing in money market funds is the danger that inflation will outpace the funds income, thereby eroding the purchasing influence of the investor's money. Most mutual fund companies carry some sort of insurance to cover assets. Investor losses in money market funds have been rare, however, they are possible. Money market funds generally have good credit quality, and generally maintain a diversified portfolio.

Money market funds generally are a smart place to hold money whether between investments, saving for a house, saving for a vehicle purchase, or looking for a safe place to put money. Before investing in a money market fund, you should read all the funds' available information, including its prospectus, or profile if the fund has one, and its most recent shareholder report.

Its important that you save as much money as possible in these current economic times of trouble. Every day theres more bad news unemployment rising, companies declaring bankruptcy, trade grinding to a halt. No one should take their jobs for granted, so it makes sense to stockpile as much cash as possible in case, heaven forbid, you should lose your job too and be stuck with the usual raft of bills and responsibilities, but no revenue to deal with them. Traditionally people have put their extra money into savings accounts, and while theres a lot to be said for them, there are indeed alternatives to savings accounts that can make you more money. A lot more money. If youre interested in alternatives to savings accounts, read on for some more tips, ideas and suggestions.

Savings accounts are great places to store money so that you dont spend it. In addition, the best savings accounts will offer you competitive interest rates. However, there are alternatives to savings accounts that serve the same purpose, give you the same access to your money, and could make you more money than a savings account. You could put your money into a certificate of deposit (CD), for example. CDs are great ways to save money and make money at the same time. With a CD, the more money you put into it the higher your interest rate will be. You can also rest easy knowing your money is insured by the FDIC, up to $250,000. You could also put your money into a money market fund (which is not protected by the FDIC) or a money market deposit account (which is). These alternatives to savings accounts could make you more money than a traditional savings account.

To learn more about alternatives to savings accounts, be sure to consult with your financial advisor or a trusted bank representative.

The news describing the current state of the United States economy is extremely frightening. Credit is tough to come by, jobs are being loss, the real estate market is in shambles and banks keep failing and closing. As an American consumer, you probably have involvement in some of these...

Economic times are scary. Banks are folding, the economy is in a downward spiral and jobs are being lost all over. Since you are fortunate enough to still have a steady stream of income, you are primarily concerned with saving as much as possible and ensuring that you stay financially intact...

Certificates of deposit (also known as CDs) are one of the safest investments on the market, in large part because they are insured by government agencies. In commercial banks, your CD is insured by the FDIC. If you purchase your CD from a credit union, your investment is insured by the National...

There are many different types of certificate of deposit accounts, but the ones we most commonly refer to as CDs are usually personal CD accounts.

A personal CD account is similar to a personal savings account: it is insured by the FDIC and usually has a fixed interest rate. The main difference...

You may have heard of FDIC Insured deposits, and wondered what it means exactly? FDIC stands for the Federal Deposit Insurance Corporation, which was created in 1933 in response to the severe bank panics brought on by the Great Depression.

During the 19th century, bank panics were relatively...

A fixed rate certificate of deposit (or CD) is a type of investment product offered by banks and other institutions, which is very similar to a checking or savings account. However, when you purchase a CD, you are making what is called a time deposit in the bank a deposit which you cannot touch...

The fight to stave off more foreclosures just got a much-needed idea! This past Friday, FDIC Chairwoman Sheila Bair revealed her strategy to assist 2.2 million borrowers' secure new loans and ultimately help 1.5 million people keep their homes.


The proposal suggests that delinquent...

Bank customers will see a temporary increase in FDIC coverage to $250,000 per depositor.

Included in the Emergency Economic Stabilization Act of 2008 was the provision for increasing Federal Deposit Insurance Corp. protection per depositor to $250,000 through December 31, 2009. The...