Options
Money market accounts
What they are and how they
work
- Checking/savings account.
- Interest rate paid built on a
complex structure that varies with
size of balance and current level
of market interest rates.
- Can access your money from an
ATM, a teller, or by writing up
to three checks a month.
Benefits
- Immediate access to your money.
Trade-offs
- Usually requires a minimum balance
of $1,000 to $2,500.
- Limited number of checks can
be written each month.
- Average yield (rate of return)
higher than regular savings accounts.
Passbook account
- Depositor receives a booklet
in which deposits, withdrawals,
and interest are recorded.
- Average interest rate is lower
at banks and savings and loans
than at credit unions.
- Funds are easily accessible.
Statement account
- Basically the same as a passbook
account, except depositor receives
monthly statements instead of a
passbook.
- Accounts are usually accessible
through 24-hour automated teller
machines (ATMs). Interest rates
are the same as passbook account.
- Funds are easily accessible.
Interest-earning
checking account
- Combines benefits of checking
and savings.
- Depositor earns interest on any
unused money in his/her account.
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