Most financial institutions offer savings, checking and investments options for consumers wanting to invest money in a bank. With a little time and effort, you can structure your money to earn the greatest return for its value. Read more to learn the many options that are available at most financial institutions for your money.
Things You'll Need
- Bank account
Consider a Money Market Deposit Account (MMDA). A Money Market Deposit Account (MMDA) or, as it is also commonly known, a Money Market Account (MMA) is used as a savings vehicle. Money that is deposited into the account is used for savings options that include the purchase of mutual funds, stocks and bonds, CDs and other investments options. These investment options are not applicable for standard savings accounts.
Open a savings account to allow for greater savings and accrued interest. An optimum savings account will yield a high interest rate over the life of the account. For the best savings options, negotiate with several financial institutions. Always request an annual percentage yield (APY) above the standard rate applied for standard banking. As of 2007, many financial institutions offered an APY of 5 percent. Negotiate a larger minimum deposit amount in order to receive a more substantial APY.
Set up overdraft protection insurance. Invest money in a separate savings account that can be used by your bank to automatically transfer money each month from that account into a money market account, primary savings account or checking account. By setting up an automatic transfer or overdraft protection feature, you can protect each account from penalty fees and returns. In the event that overdraft protection is not required during the month, the money can then be transferred into a savings account to accrue interest.
Tips & Warnings
- Always maintain accurate and current financial records.
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