Finding the Best Money Market Rate

With a money market account you can protect your capital while you’re in between investments. To make the most of money markets, you need to find the best account for your situation. The following 3 tips should help you.

Consistency Is Key

The money market account that’s most advantageous to an investor is that which offers a consistent high rate. There are quite a lot of accounts out there that feature awesome rates, but only for a limited period of time. These accounts are not really helpful, not if you plan to capitalise on the opportunities of money markets. So, choose an account with a consistent good rate and you won’t regret it.

Make a Large Deposit

An investor who makes an initial large deposit into a money market account benefits from higher rates. That’s because many financial institutions offer great rates for big deposits. While the minimum deposit with which you can benefit from high interest rates varies from bank to bank, expect to make an initial deposit of at least £10,000-15,000 to get a great rate.

Manage Deposits Wisely

While some investors squeeze the most out of money markets by pooling deposits - and thus benefiting from the best interest rates - other investors find it more effective to use multiple money market accounts. Your choice ultimately depends on the deposits you are willing to make, and on the limitations and features of the accounts you have chosen. Pay attention especially to the account balance requirements. Once you meet these requirements you can usually move funds to other accounts more effectively.

As an investor, finding the best money market rate for your situation should be a priority. Start by comparing rates, and choose the account that offers not only the most attractive rates, but also the most flexible ones Ask the Experts at Compare The Financial Markets today

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