What is a Common Money Market Rate?

Money market accounts, which are basically special, higher-interest accounts, make money for you by placing your money into the exciting, fast-paced world of daily banking transactions.


When you place some or all of your hard-earned cash into a money market account – the amount is up to you, and what kind of a minimum balance a bank requires – you are going to earn a higher interest rate than you would on a plain old savings account. That’s some good news you can use, right? Who doesn’t want to maximize their earnings, and build a better and stronger financial future? The interest rate you’ll be getting on your money market account is tied to daily, ever-fluctuating rates that are determined by a variety of interesting economic and financial factors. The money rates you’re looking at will come from broker call loans, federal funds rate, treasury bill rates on 3- and 6-month items, rates on bankers’ acceptances, and such exotic things as “Eurodollar time deposits.” There are many other financial indices that contribute to the creation of a money market rate, but these are just a few of the biggest players in that game.

In addition, money market accounts are insured by the FDIC. That way, you won’t go bust if your bank does.

The money market rate changes a lot, and different banks will offer different rates, so be sure to check the financial section of your newspaper or favorite websites to find out what the current financial picture looks like. In addition, different banks have different requirements concerning their money market accounts. Some require a very high daily balance in order to qualify for the best interest rates. Others don’t, but may have disturbing details hidden in their fine print.

Before you put your money into a money market account, be sure to sit down with a qualified financial services expert and go over all your options and all your many, many questions. Your qualified financial services expert should help you understand all the ins and outs of your money market account, including rates. After all, it’s your money, and you deserve to know.