Comments on: why do money market offers higher interest rate than saving? http://fundpicksandpansstocks.com/why-do-money-market-offers-higher-interest-rate-than-saving.html Data markets, stocks, dow, nasdaq, cnnmoney jones. Mon, 21 Mar 2011 16:53:26 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: DoeS1111 http://fundpicksandpansstocks.com/why-do-money-market-offers-higher-interest-rate-than-saving.html/comment-page-1#comment-2917 DoeS1111 Thu, 29 Jul 2010 08:34:18 +0000 #comment-2917 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 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

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