4 Big Reasons for Choosing Money Market over Anything Else

There are three period in the life of a person wherein he thinks of investing his monthly income into some profitable venture. The first is when he is starting early on in his career and seems to earn more than enough. Second is when he is in the middle of the career spectrum and realizes that he has to save up for the future. Third is when he failed on the first two and retirement is 5 years away—he suddenly realizes he needs a retirement plan or a funeral home plan, at the very least.

Given the numerous investment opportunities readily available to people right now, all that we need to do is to choose which will work best given individual preferences and differences. Of course, the assessment will have to start with an honest evaluation of one’s current financial stability. Ask yourself whether you have enough assets to opt for a long-term, low-liquidity investment. Consider whether you can tolerate risk taking activities at this point in time or if you prefer going for the safe investments.

A survey among 1,800 white-collar employees, more than half answered that they would rather go with the safe kinds of investments. Taking into consideration the recent financial turmoil that the country underwent, it is certain that more people will answer that they will go for the safe investments. Nevertheless, this safe investment should still generate financial gratification for the person controlling the account.

The answer to this dilemma is simply money market deposit accounts. Although it has a similar name with money market funds, the two are quite different from each other. Right from the very nature of its operations, money market account is obviously distinct from its unsecured counterpart.

Given that backgrounder, what are the 5 big reasons for people to choose money market deposit accounts over anything else?

Reason # 1: Money market deposit accounts allow you to write checks

Check writing is an integral part in most business processes, especially when cash is not available. People can use not only ordinary checks, though. They can also write checks via the computer (also called as Computerized Check Writing) and automatically pay bills via bank programs that forwards that check information in order to pay the bills.

Reason # 2: Money market accounts have higher interest rates compared to passbook accounts

Let’s face it: passbook accounts abound in the US. Most of us grew up with the said account but being born in a time of passbook account proliferation is not an excuse to continue practicing it. You can leave it to your parents to keep on using the passbook. As part of the younger generation, your task is to get more revenue from your investments and that is through the help of money market accounts.

Reason # 3: Highly liquid assets

The thing that concerns (and even frightens) most people is that they think all investments will keep them away from their hard-earned money for years like how time deposits work. In fact, this type of investment will surely earn more for the investor—but it does not necessarily mean that highly liquid investments don’t earn. Ask money market investors and they’ll be more than willing to tell share with you the ease of this investment with assets readily convertible or available for encashment.

Reason # 4: Money market investments are insured by FDIC

If there’s anything that investors want to hear from investment companies, that is a short statement saying that their investments are insured by the government. If it will not give you enough relief as an investor, then what will?