Though it is not a mountainous task to find out the best rate offered in the money market, it does require a certain level of awareness for the rate shoppers to enjoy the highest yield for the longest period of time. Besides using MoneyRates.com as the basic comparison tool for comparing the ever fluctuating rates offered by the banks, following tips should also be followed to reap the best fruits.
Keep an open mind
There’s a common perception that the banks that have the largest banking shares in the market, should be the ones to go for. This is no doubt the right mindset when it comes down to the bank’s accountability. But, as far as shopping for money market accounts is concerned, as rate shoppers, you need to be a little more open minded, as the biggest banks are hardly found to be offering the best rates to the retail customers.
Consistency is the key
Many banks offer a good rate only as a publicity stunt, for a short period of time. So, before being lured into an offer, you must first do the calculations right so that you don’t end up regretting in the long run. Going for banks that are more consistent in terms of providing higher rates to their customers, does make a worthwhile difference over a long period of time.
Get the best from one account
Pooling your accounts can be a good option as higher rates can be obtained for higher deposit levels in many banks where such account tiers start from $500. You should always look for such offers before depositing your money in several different accounts.
Make the best use of your money
Besides pooling your deposits in one account, you can ensure the highest yield from your money by deploying your deposits in multiple accounts as well. After you have ensured the highest rate offered by a bank upon reaching the necessary account balance, you should consider depositing the rest of your money on your other checking accounts so that you can get rid of the fees on those accounts while giving up only a little interest from your money market accounts.
Assess your level, then compare
Before comparing rates among different banks, you must first assess the size of your deposit that you are going to make and then compare rates, offered for accounts relevant to that level of deposit only. Planning to deposit a moderate amount and choosing a bank that is offering the highest rate associated with the highest level of deposits, won’t prove very wise since that very bank may not offer a very good rate as compared to the other banks for your level of deposit.
So, what may seem lucrative, may not prove to be so lucrative an offer in the end. To get the best rate in the money market, the above tips will always come in handy.