Hey everyone,
I’m thinking about opening a money market account and could use some advice. What are the benefits compared to regular savings accounts? Also, any recommendations on where to find the best rates or features?
Thanks for your help!
Fidelity is what I utilize. It’s easy to use and effective. To be really honest, I wouldn’t stress over finding the greatest one or trying to achieve the highest percentage points. To get started, just open one; worry about optimization later. In the big picture, it doesn’t really matter numerically to chase down a few percentage points for an emergency fund that is presumably less than $30k.
It’s critical to realize that what you’re looking for is a money market fund, not an account. The latter is only a word that banks employ to promote their savings account. Such an account will probably have conditions and pay at a reduced interest rate. A money market fund from a brokerage like Fidelity or Vanguard is what you’re after. Vanguard’s VMFXX is what I use. At the moment, it pays 5.26%. Opening a Vanguard brokerage account online is simple and takes only five minutes. It can be financed from your bank account, and you can easily transfer funds between the two as needed. It is not advisable to use a bank’s money market account.