Question for the Money Doctors
Question submitted on Feb 5, 2022.
QuestionWhat is the best compound interest saving account?
What is a money market account?
Where I could learn more about this type of account?
What is the best compound interest saving account? There is not one answer to fit all situations. We suggest working with your financial advisor to determine what would work best to meet your investment goals. Keep in mind accounts that compound daily (vs weekly or monthly) are more beneficial as your compounding interest will increase faster. Also, the sooner you invest, the better. It is then key to keep your money in the same account so that you will not miss out on earning additional compounded interest.
What is a money market account? A money market account is similar to a savings account. However, with a savings account, you cannot typically write checks; but, you can write a *limited” amount from a money market amount. There may also be a minimum balance required with a money market account. This account can be useful if you are aiming to avoid taking out money from your account too often. They typically offer higher interest rates than savings accounts, but lately the rates have been similar to one another.
Where could I learn more about this type of account? Your first step would be to contact your financial advisor to learn about each type of account and how each would complement your lifestyle and individual investment goals. You could also speak with a local representative at your bank to discuss options and what may be best for you. Another resource would be the 360 Degrees of Financial Literacy found at https://www.360financialliteracy.org/.
For additional information visit //www.360financialliteracy.org/