A money market account is a savings account with a difference, in that in return for larger scale deposits it offers a highly competitive rate of interest, sometimes called the real rate. A money market demand account or money market deposit account (MMDA), are exactly the same; however, money market funds are different, which is important to be aware of. Here is a quick guide to which is which and how each one works.

Money market accounts

As money market rates of interest are generally higher than regular rates, customers usually have to maintain a minimum balance in their account to benefit from the more attractive money market rates of interest. The minimum balance required may be up to $2,500, though it might well be much more. In addition, some banks or credit unions restrict the number of transactions allowed in any particular month; for example, setting the limit at three to six withdrawals or less.

How money market accounts work

Money market accounts usually attract a daily compound interest rate, which is paid monthly. This means the lender pays interest on the interest, as well as on the original sum. Interest rates can vary quite considerably; the more money held in a bank account, the higher they can be. In terms of convenience, it is always worth checking the extent to which a bank offers flexible access to money; for example, by check, debit card or online, alongside a high yield. Deposits in money market accounts are FDIC insured, which means the Federal Deposit Insurance Corporation will protect them in the event that a bank or credit union goes out of business, usually up to a limit of $250,000.

Money market funds

While a money market account is a form of savings account, a money market fund (MMF) is a mutual fund. Even though it is possible to invest in a MMF via a bank, a money market fund is not a bank account and therefore does not have FDIC protection. This is important, because an MMF can make investments in the short-term debt of the U.S. government and its agencies and in the short-term obligations of foreign and domestic banks and corporations. The level of risk is therefore greater than that of a money market account.

Short-term interest rates have been badly hit by the recession and while money market accounts might pay around 0.5 percent, on average, money market funds tend to scrape along at around 0.03 percent. Shares in MMFs are designed to be held stable at a value of $1, although prices slipped below this level in 2008. Every time an investor collects $1 in interest, another share is added to the funds. Regulations are being tightened to avoid any recurrence of share price slippage.

Which is best?

Money market funds tend to be convenient and can provide ready cash when needed, but they pay lower interest rates at times of financial uncertainty. At the moment, money market accounts are the clear choice for those seeking higher levels of safety and yield. Should interest rates start to rise, however, money market funds may well regain the upper hand and start paying higher rates than money market accounts, which they often did prior to the financial crisis.

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A credit card is not just a convenience in this age, it is a necessity. Not only do you need a credit card for your daily transactions, you also need it to get loans such as car loan or a mortgage. Creditors look at your credit card history, through your FICO score, to find out if you are a trustworthy lender. That is why we have collected the four major factors to consider when you get your first credit card in the following sections. These factors will help you compare credit cards, so that you can choose the card that best suits your needs.
Now let us look at the four factors that go on to define a good credit card.
1. Annual Fee A lot of cards have an annual fee that will be levied even if you do not use the card even once in the year. However, you can also apply for and get cards that do not have an annual fee. It should be noted that cards with an annual fee usually have a lower interest rate, so if you get a card without an annual fee, you should be careful with your purchases and about paying it back.

2. Interest Rate This is the interest that you will be charged if you do not pay your credit card bill in time. Credit card bills are usually paid in a billing cycle, so the bill for every purchase made within a specified period, which can be 30 to 50 days, is paid for on a specified fixed date every month. In short, if you use your credit card, and pay the credit card bill on time, you won’t be levied any interest; and the interest is levied only when you do not pay your bill in time. It should be noted that many a times this interest rate is mentioned for a month; when annualized, such interest rates are much higher than normal interest rates for other loans such as car loans.

3. Credit Limit This number, in dollars, specifies the total credit that you can get from the card. For a student, it is common to see a credit limit of about $1000. If you are a professional or employed in regular job, the credit limit will depend on your income. So it is common to show your income statement when you get your credit card. This is also called the spending limit.

4. Rewards Points or Program Finally, almost every credit card has a reward system using which they try to encourage people to use their credit cards. Not every rewards system is rewarding to the buyer, so you should be careful when considering or using a rewards system. When you compare credit cards, and find that the first three factors are similar, the rewards feature can help you decide what card to go for. For example, if you are a frequent air traveler, you should go for a card that has a reward points system for buying airline tickets.

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The investment in gold continues to grow in popularity as both seasoned and rookie investors opt to go down the golden route of success. Gold offers something that a great deal of other investment routes can’t; stability. This is especially important with the current economic climate being truly unpredictable, as most investors will prefer not to take unnecessary risks with their money.

Traditionally, investors would turn to property for secure investments, however now gold bullion is proving to be a much safer option in terms of offering impressive returns. This is because gold is a finite resource that is increasing in popularity, and the supply simply cannot cope with the demand for it. As the amount of gold left to mine diminishes, its value continuously increases, therefore making it such a popular option for investors.

If you’re considering investing in gold, there are a few vital aspects to consider before doing so…

Forms of Gold Bullion

Gold is available in a wide range of forms, from jewellery and ornaments through to bars and coins. In terms of investment, bars and coins are much more viable options due to their purity and high value. Jewellery and ornaments are generally unpopular choices, as their value often depends on their aesthetics and their purity is questionable too.

The simple, uniformed shape of bars and coins also mean that they can easy be stored or transported, and this in particular makes them attractive to investors. Available in a huge range of different sizes depending on budget, gold bullion bars can weigh from anywhere between 1oz and 1kg.

Purchase and Delivery

It’s recommended that gold bullion is bought from reputable merchant to ensure its quality and that it’s as pure as possible (ideally, 99.9%). Merchants will rarely keep great amounts of gold on site due to security reasons, so you will more than likely have to order your gold in advance before you make any payments. As well as this, be sure to organise a set delivery or collection time well in advance to avoid any sort of confusion that may occur.

Before revelling in your success, you’ll all have to ensure that all the necessary security arrangements are made for storage before you make your purchase. This means adding your gold bullion to your insurance policy, as well as storing it in a safe, protected by a burglar alarm for added peace of mind. The majority of insurance providers will insist your gold is heavily protected to deter thieves as much as possible.

Once you have all the procedures in place, it’s time to sit back and watch your gold increase in value, whilst over time bringing you back a very handsome return on your initial investment.

UK Gold Bullion provides the purest and highest quality gold bullion for long term investments. For more news, information or to make a process, visit their website today.

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