why do money market offers higher interest rate than saving?
July 29th, 2010
saving and money market is similar in aspects of regulation D, minimal balance, and FDIC insurance. then why does money market offer higher rate of return?
My Related Websites
- Looking for travel insurance against possible Icalandic Volcano …
- FDIC and NCUA Insurance $250000 Limits Now Permanent » My Money Blog
- Auto Insurance Rate Averages by State » My Money Blog
- Estimate Your Portfolio's Rate of Return – Calculator » My Money Blog
- Calculate Your Exact 2006/2007 Portfolio Rate Of Return » My Money …
- Personal Rates of Return: Money Weighted vs. Time Weighted » My …
- Advantages To Indemnity Health Insurance Plans | iPad Insurance
- This unique design wrecks Money Market Investors “belonging …
- DJ MoneyMarket Inflows 858 Bln In Latest Week IMoneyNet …
- I need to calculate the rate of return for investments part 2 …
- Matthew Yglesias » Capital Market Innovation
- Certificates of Deposit : Look for the FDIC Seal |
- Bollard raises OCR, notes weak recovery « The Standard
- Beware Of Any Life Insurance Company | SmeMedic
- FDIC Insurance Limit Permanently Increased | MyBankTracker.com
- SunTrust Bank Money Market Features 1.40% APY | MyBankTracker.com
- The CRASH of 2010 Part II: The #1 Solution for SAFE Retirement …
- Certificates of Deposit : Look for the FDIC Seal « Finance Blog
- EverBank $75 Cash Bonus On New MMA and Checking Accounts
- EverBank $75 Cash Bonus for New Money Market and Online Checking …
Mail this post
Posted in 
Tags: 
higher risk is associated with it. your money is used as collateral for margin purchases and other ventures. thus, theres a higher rate of default in money market rather than savings (although something similar happens with your savings)
additionally, theres usually a 5 business day holding period on your cash, so you cant take it out as immediately as a savings acct, so they have to offer a higher rate to compensate for the time inconvenience