Financial Growth with High-Yield Money Market Rates

Typically it’s possible to find the best money market rates when you look for high-yield money market accounts. High yield money market accounts offer the best money market rates because they offer variable rates. Here’s a handy guide to these accounts and the best way to navigate the difficult waters of high yield money market accounts.

High Yield Interest Rates and APY
A high yield money market account usually pays 1 or 2 percent more than the national average for savings account interest rates. The annual percentage yield, or APY, will dictate the exact interest return on your investment.

The APY is always a variable rate. This means that the bank or financial institution where you opened your account can adjust the interest rate at any time. Account holders who make an initial deposit with accrued interest will earn compounded interest on the advertised APY.
Requirements of High Yield Accounts

Almost all high-yield money market accounts have a minimum balance. This is required to earn the APY. If your balance goes below the minimum required, then you may not earn interest on the high-yield account.

Banks discourage withdrawals or transactions with high-yield accounts. As such, there are often fees for such banking activity with high-yield accounts.

Look Online for the Highest Yields
It’s a good idea to look at online banks to find some of the highest yielding money market accounts. You’ll have to make your transactions online or over the phone with these banks, since they probably don’t have physical branches.

But, these banks don’t have much overhead expenses, so they can afford to pay high interest rates. Most of the time, high-yield money market accounts are insured by the FDIC. Choose a high-yield money market account if you have idle cash and want to earn very high interest rates.

This article was brought to your by Ratelines, a financial portal for advice on the best CD rates.