Confused what all are the advantages and disadvantages of Money Market Savings account? Here you can learn about it and can decide whether is it really for you.
Before going into the topic, I want to let you know that both Money Market Savings Account and the Money Market Funds are two different things. The money market account works like a savings account which doesn’t have any risks while a money market fund works like a mutual fund where a person will buy the securities which has certain risks.
What Will I Learn?
Money Market Savings Account Pros
- You will get high interest rate than a normal savings account.
- Your money will grow in a short term
Money Market Savings Account Cons
- In order to start a account, you need a lot of money like thousands of dollars unlike the regular savings account.
- As per the law, you can’t pay more than 6 times and some banks even only have the limit of 3 per month. So, your money needs to be in the bank more.
Now, you have to choose which will work best for you. You can also look at the other articles to know more about the various investment options available for you to grow your money.
Stock Market or Savings Account?
People’s opinions & comments
I prefer savings account, I don’t trust the government and what could happen to the stock market.
Stock Market, it worries me sick but the interest a savings account or a shorter-term CD is pitiful, just pitiful.
Stock Market is better, I diversify… all over the place.
- Stable undeveloped Property
- Prospective Real Estate
- Stocks
- Bonds
- Mutual Funds
- Business Ventures
- Project Funding (Property Flipping Investments)
- Futures
- Commodities
- CD’s
but Savings Account… That is about the least profitable place to put your money – and the most vulnerable if the government, or a creditor, decided it wanted to attach your assets
Interest in savings account is so low its barely worth the bother. I did join up with something called betterment a year ago and am up about 8% so far.
Savings but the only problem is inflation.
In my Company, and Invention, which will usher in the Modern Age. It makes Electricity Pollution Free, Water, New Air and another Infinite Pollution Free Energy Resource Hydrogen Gas, at literally ZERO COST
Savings – I have all the stock I need, so the rest can go into a money market.
Stock market – over the long haul the market always goes up and thee interest you make depending on the investment garners a much higher return
Both actually, but start with a savings account. The younger you are the best chance of accumulating wealth is long term investing in solid, stable sectors. Diversify.
The stock market is heavily manipulated ,and savings accounts give no significant returns.
I have several savings accounts. And I use only 10% as risk capital in the stock market.
Savings account although I do have a 401K and money my Dad left me invested through Scot Trade.
As I like government bonds. They pay the highest rate of interest offer best tax cuts and are safer than the bank. Why cause a bank can go broke and the CEO and SEO can walk away with everyone’s money laughing their heads off and you get nothing back. But the government has to repay even after bankruptcy. That is how safe your money is.
It should be a bit of both, amounts set by age and goal of saver.
Stocks, history has proven it always pays off in the long run. But it’s cyclical and if you happen to be retiring in a down market, you’re going to get hurt. That’s why you need to diversify your assets and have other forms of investment – annuities, savings account, government bonds.
Choose savings, be safe, other than sorry.
If I had money to invest it would be in the stock market. Money in the bank is basically stagnant. Long term, you are much better off in the market.
I put my money in 4 houses I purchased in my late 20’s, early 30’s. I paid my brother who is a carpenter, to fix them up, I rent them, and I now have my retirement money. Plus, SS, if, and when I get to 62, my pension, and military retirement.
Start young, take your money, go to auctions. I bring in about 2,000 a month from rentals. The taxes on the houses are around $2,000 a year in Pa. Take that rent money and put it away the first two months, you don’t have to worry then, when taxes come around.
Mostly tax free muni bonds. The difference in the rate of return is a difference of whether I work for my spending money or not. Why let it sit in the bank making 1% when you can get 4 or 5?
Stock market is gambling basically. Best thing to do is go into penny stocks and hope for the best.
I have a “play” stock account I started about 15 years ago with $2,000. Whenever I saw something that interested me, I bought it. Sometimes I did well sometimes not, but I knew that if I lost the $2,000, that would be it. That was all I was prepared to lose. That account has increased tremendously over the years. When I see that something I bought has increased appreciably, I sell off enough to cover my original investment and let the rest sit. Something I bought over a year ago for $9 a share went up to $19 and I sold off half. The price went down after that, but I still had the other 50 shares and that stock is now almost $20 a share.
Yeah, that sounds like the careful gambler speech to me, man. Imagine if you put a 1000 into a penny stock that went from 3 cents to 10 or even 15, is what I’m saying. Though I’ve heard penny stocks are much more riskier cause they are the “I started in mom’s garage” type of businesses.
That’s why I don’t do penny stocks. I would prefer to buy something that has a bit of a track record and is still low. I don’t think it’s prudent to put that much money into a penny stock. If you hold it less than a year, you pay short term capital gains tax on it. Unless there’s a hostile takeover, which has happened to me with a couple of companies, I try to hold it for at least whatever time period you have to hold it not to pay short term capital gains.
Yeah, guess the thing I’m saying, more or less, is play “slots machine” and you’re saying playing “blackjack”.
So what’s really the difference? In my personal opinion, a penny stock has no track record. With a company that has some kind of history, you can see what it’s been doing over a period of time. You have a little more information on which to base an opinion as to financial worthiness.
Keep some money in the cookie jar too.
I prefer saving account or stock market any day off the week because the stock market is unbalance. One minute it high and the other minute it low! It’s risky for me! If you’re not afraid of taking risk! By all means! Go right ahead,but NOT with my hard earn money.lol
…the problem with the stock market is that the insider traders have made any real money to be made there. The small investor’s money is what makes the insider traders rich!! Because of republican resistance to regulation on Wall Street, the stock market is SO incredibly crooked !!..(think…bernie madoff..and he’s just the one that got caught; all the rest are just like him !!)
savings accounts….do nothing to increase in value…. do your homework….. and stocks can be fruitful
I work in a Financial Broker’s office, so this is a great question! I often hear my boss’ husband profiling his clients in terms of their capacity for risk, and based on that, I would assume I am somewhere between a Cautious Investor to a Balanced Investor. There is no doubt that the kind of risk presented by the Stock Market can be potentially rewarding, but I don’t take loss very well. I probably would edge towards the rewards of watching capital grow inside an account and knowing that amount will only rise as I add to it.
My income is barely sufficient to support me let alone invest in the stock market
There isn’t simply one of two answers for investments. The potential earnings between stocks and savings are hardly comparable. But time is a big factor in deciding how much to put in aggressive stocks, savings, and bonds. If you will retire in 5 years, you want to be much more conservative, like 80% savings and bonds, 20% blue chip stocks. If you have 40 years to retirement, then you can be much more aggressive, and almost reverse of the numbers with some foreign stocks.
I’ve found investing in the things you love are much more economically sound. My retirement plan entirely revolves around living in a cabin in the woods. Totally self-sustained and off the grid. But not in the crazy, right winger prepper, conspiracy theory, tin foil hat wearing sort of way. There won’t be a bomb shelter or a stockpile of guns. It’s just living off the land and providing for yourself. That probably sounds like I’m a hippy but I don’t care. You can prepare for the end of the world… I’m gonna prepare to be happy while I’m here : )
Been making an average of five times what savings interest pays for the last 23 years…….savings interest sucks……….
In my wallet
It is not one of the other. These are only two locations or means EVERYONE should utilize to prepare for the future. Every-one should have 5+ retirement systems.
If I make a bad stock choice I might loose money. In a savings account I won’t loose money but with the interest rates even compared to the governments official inflation rate I might as well have lost money because what I have to take out won’t buy near as much as what I had when I put it in.