Money Market Mutual Fund
I went toe to toe with Babe’s boy and won! I love when women win sword fights.
(click on the bold-faced vocab word:))
Babe’s boy WRONGLY believed both were FDIC insured.
My magical memorization skills helped me with my win.
Money market deposit accounts are higher-than-usual interest earning, limited withdrawal accounts. Offered by a bank. FDIC insured.
Money market mutual funds similarly are higher-than-usual interest earning, limited withdrawal accounts. Offered by a mutual fund. Not insured by FDIC.
Both are ideal investments for those who withdrawal infrequently and are looking for higher-than-usual interest payments. Handy for say an emergency fund. But fully understand the risks and rewards of deposit accounts vs. mutual funds.
Good luck in your sword fights! Go girls!
(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)