How Best to Invest Money in the Bank


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.

Related Searches

Promoted By Zergnet


You May Also Like

  • How to Invest in CD Accounts

    When you decide to invest in certificate of deposit (CD) accounts, make sure to do your due diligence in checking out available...

  • How to Invest in Foreign Banks

    Investing in foreign banks can be rewarding or, at times, can be costly. Like all investments, guarantees are few and success is...

Related Searches

Check It Out

4 Credit Myths That Are Absolutely False

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!