Money market accounts are a great way to start an investment portfolio for young investors. Getting involved in saving and investing for the future can be very intimidating for people who are new to the market. There is a lot of doubt that goes along with putting one’s money at risk. If you can get a start that eliminates some of that risk, then you will have a much easier introduction into investing.
Money market accounts bring that reduced risk. They are some of the lowest risk investments in the entire market. Because money market accounts provide money that is being used by the government and large companies, it is a pretty safe thing. With some of the rates that are being offered on money market accounts today, people would be crazy to not look into investing in them.
Most of the time, people lock into things like CDs and bonds because of the relative surety of those investments and the decent rates. Money market accounts lock in those same rates, but they provide immediate access to the money. Bankaholic offers a service to find the best money market rates. Instead of waiting one year for your investment to mature, you can run down to the bank and withdraw your money market account balance tomorrow with no penalty. When you have the chance to get CD rates on liquid money, what is not to love?
Starting a money market account is easy. Money market accounts are excellent way to jump head first into the investment market without having to have a great deal of experience or knowledge.