A money market account or day money account offers high interest rates for daily availability. It’s often those investments which guarantee daily availability, make the race to win the favor of investors. And that is to right – immensely important to have always full access to its financial reserves. What however always restored to experts in pure amazement, is the fact that remains the most sight deposits (so called money lying on accounts where they daily, or at least are available within one month,) store on money market accounts, money market funds or even on conventional savings accounts. For the experts absolutely not understand is, why are there still so many funds on just these deposits, although there is now much better interest rate offers on the market. The interest that is paid to a money market account, money market funds or savings, differ only minimally and are currently all approx. 0.5-0.8% – not per month and per year! Put based, having a combined loss of monetary value and inflation rate of 1.6% in Germany, this is at best a money destruction of 0.8% per year. The absolute amount of money increases so, de facto, the money is but faster less worth than it could generate income through interest rates.
Precisely for this reason, experts recommend to use only so-called money market accounts as sight deposits. As with all sight deposits, including the funds are money market accounts, are available daily. Also, the assets of the customer at any time via the deposit guarantee fund for the respective financial institutions are covered, so the money of the customers in any case in the event of a bank failure. Likewise, money market accounts are completely free of charge and usually easy can be managed over the Internet. Who wants to open a day-money account, should look at first of all a money market account comparison. Those banks that their customers pay just the best interest are always named in this comparison. There is also information about what banks particularly benefit increased interest rates by any starter premiums or in the early days. Mischa Hill