Money Market in US

In the world of finance, money market is referred to the global short-term lending and borrowing. Money market also gives liquidity funding to the financial system globally on a short-term basis. This is the place where commercial paper as well as banker’s acceptances and treasury bills are purchased and sold. It mainly comprises of financial institutions as well as dealers who transact in either money or credit and who are interested in borrowing or lending. These borrowing and lending take place for shorter duration normally a period of thirteen months. Money market is treated as a safer avenue to put money as the securities are highly liquid with short term maturity.

It is a major decision for an individual how they manage their money. There are various options where one can put their money like savings bank or savings and loan associations or even in credit union. It is always safer to have a bank account rather than keeping the cash. There are different kinds of plans that you can choose while opening a bank account. It is up to you how efficiently you select the bank account which is best suited for you.

The money market accounts give you the option to write checks which is the most commonly opted account that generates higher rates of interest on your money. However, to get the benefit of higher interest rates, you need to keep a higher minimum balance in your account. Also the withdrawal of fund from a money market account is little more complex as compared to any other checking account. In a given month, you can transfer a maximum of six times to a different account or to different people of which just three transfers are allowed to be in checks. There are fees levied on money market accounts.

In case of savings accounts there is option for withdrawals but then one does not have the facility to use check to withdraw. Here also the number of withdrawals and transfer is limited for a particular month. There are different types of saving account like you can choose the passbook savings or you can go for the statement savings.