I am 21 yrs. old. I’m trying to save money for marriage and a car. I want to keep my money where it will earn some significant interest. (not like my 1% savings acct. i have now!!!) what is the difference between mutual funds and money market accounts? what are the downfalls and advantages of both? which should i get?
Home | Investing | Blog article: I’m wanting to put my money somewhere where it can earn some good interest! mutual funds or money market acct?
jambo92 8:37 pm on August 26, 2010
Go to http://www.bankrate.com I have gotten some GREAT advice on that website, and it will also show you the banks that have the best rates right now.
Good for you!
PJ 8:37 pm on August 26, 2010
Money markets allow you access to your money when every you need it. I have had good luck with money markets. I don’t know much about mutual funds but you have to leave your money in there for a while.
mjlovesjason 8:37 pm on August 26, 2010
money market is ur best choice
colonyvice 8:37 pm on August 26, 2010
mutual funds worked best for me.
bud68 8:37 pm on August 26, 2010
Your savings goals are relatively short term. I’d stay with money-market funds or bank CDs. Mutual funds are good for longer-term investing but can significantly decline in the short term.
Craig O 8:37 pm on August 26, 2010
While you ponder the answers given so far. You really should open an E-trade.com savings account currently paying 3.3%.
Phyllis P 8:37 pm on August 26, 2010
http://onlineweb.owns.it
you can get much information in this website, If you will check anyone blue link in website.
Joe 8:37 pm on August 26, 2010
Money-Market account are extremely low-risk accounts that function in a manner very similar to savings accounts – with the primary difference being that money-market accounts carry a higher interest rate because they are *slightly* riskier and *slightly* less liquid…but really, these are very safe.
Mutual funds are a collection of either debt or equity instruments (stocks and bonds) and therefore have a much higher risk than a money-market account, so while you have a larger potential gain you could also lose some of your money.
A third option to consider are CDs, which carry higher interest rates than savings accounts, zero risk, but have low liquidity. For example, on a 1-yr CD you are guaranteed the same interest rate for 12-months, but you can not access your cash if you need it (not without paying a penalty).
You need to consider how much income you would like to make and how much risk you are willing to tolerate.
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