what is the difference in money market accounts?

MMa's can either be a savings or checking account. at most physical banks like a local 1, the minimum balance and deposit amount is 5k, but you can start off with a regular one, (no int), and change it over. cd's can be for 6 months or more, but you can't touch it without penalties. also, MMA's start around for example .00325 X 5k or a gain of $16.25 the first month, and compound, .00325 X $5016.25 equaling a balance of $5032.55 the next month. and you can add as much or take out what you want, suffering no penalties unless you fall below the minimum balance. at some banks the initial rate is introductory, and goes down after 3 months and remains there until you reach milestones, like 10k, and 20k and so on, and go back up and stay at those new rates.

http://pinchallthosepennies.blogspot.com/

Money Market Accounts are investment accounts that are insured by the federal government and tend to yield about 5 percent interest annual as opposed to a savings account or a CD at 2 to 3 percent interest. These Accounts are very liquid. That is the value does not flucuate wildly. This means you would be able to withdraw money on a moments noticed without worrying if the market is down and loosing money.

CD are 6 month to 6 year investments. That will penalize you for any withdraws before the maturity date.

I would recommend keeping 3-6 months of take home pay in a money market account

MMA has a bit more % than reg savings and less than CD

http://www.bankrate.com/#

rates are under the 4th tab

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