Understanding the concept of CD is vital to beginning an analysis of money market versus savings account. The CD (certificate of deposit) system offers an attractive option for interested investors. CDs work by making investments in the money market. Both accounts are different, but not entirely different either. Traditional savings accounts and money market accounts are designed to help people save and grow their money safely. ‘Safely’ means that they …

Most often people tend to get confused with money market accounts and money market funds.  Money market accounts (MMA) are more or less like savings accounts and are advertised by banks.  In reality, they are very similar to the regular savings accounts.  The most distinguishing factors between money market accounts and money market funds are the factors of choice and risk.  This could be the single largest factor one will …

A private backstop has been planned by the mutual-fund industry against money market funds.  Alternatives that have been suggested by the US regulators that includes doing away with the stable $1 net asset value (funds’ value).  The proposed plan by the industry has been sent across by the Investment Company Institute which is Washington based, where it calls for the financing of private banks by the fund companies, up to …

A proposal has been made by the money fund industry to keep some money from the money market mutual funds in a private fund in order to meet some emergency situations such as large redemptions.  This proposal has come from the ICI or the Investment Company Institute which is the funds’ trade group.  Here the aim is to have a private liquidity fund which could come into force if the …

The SEC (Securities and Exchange Commission) has on Wednesday tightened the regulations for money market funds in order to prevent financial meltdowns in future.  Money funds are more like the checking accounts as they are interest-bearing but they are essentially mutual funds which invest in short-term and high-quality IOU’s that are issued by the US (state and local) governments and corporations.  But the share prices of money funds are kept …