Highest Yield For Money Market Funds
Money market funds are nothing but a type of mutual funds that are open ended. They offer short term investment opportunities where the money is invested in debt securities that are highly rated. These funds pay dividends to investors while also ensuring that the liquidity of the investments is maintained. |
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Usually money market funds have high yield and as the investment is made just for short term. The funds are regulated by the SEC's Investment of Company Act of 1940. Most securities mature in around 180 days. These funds are of the utmost quality and offer a great investment opportunity to investors who have low risk appetite but want a high yield.
Some of the highest yields for money market funds are from financial institutes that work online. It has been seen that online banks usually offer higher yields to investors compared to brick and mortar banks. This is primarily because they have low operating costs. However, you should not worry about the safety of your investment as these online banks are backed by the Federal Deposit Insurance Corporation, or the FDIC.
Some of the highest yields for money market funds are given by banks like Everbank, Ally Bank, Discover Bank and Capital One. You can get APYs ranging from 1.77 percent to 1.20 percent from these banks. However, many of these banks have a minimum deposit requirement, but if an investor maintains a specific monthly deposit, then monthly fee for maintenance is not charged. Also, some of them offer bonus rates for the initial three-month period.
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