Managing Money Market Accounts

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Managing money market accounts requires looking at the value of currency in different markets and deciding where to invest savings account money. Analyze the different options for money market account investments with help from an investment consultant in this free video on bank accounts.

Part of the Video Series: Personal Finance & Money Management
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Hello I'm Roger Groh and today we are here to talk about how to manage money market accounts. A money market account is a glorified savings account and traditionally you and I just look for rates. Today you can do that on line. If you go to bluebird.com or Reuters or even your own bank typically they would compare their rates against the rates of other banks. You can move your money usually for free between banks in order to get the best deal but perhaps you could do more meaning there is no reason why you have to remain invested in the United States. For instance you can invest in Canadian money or you can invest in Swiss money or you can invest in Hong Kong dollars and receive the rates that are applicable in their own markets. Now there might be more risks. I would be very careful doing it but the point is that there are a lot more options available to you than simply shopping for rates within the United States. The other thing to think about is currency. Now it sounds strange but if you invest your money in Switzerland, not only are you going to be concerned with the rate of interest that you would make in a Swiss Money Market Account but you also have to be concerned about what happens when you try and bring your money back from Switzerland. Well if the value of the US dollar has gone up, sorry, you're out of luck and you have lost money. You may have just wiped out the interest that you have made on that money market account in Switzerland. On the other hand if the US dollar has weakened you have made extra money and you may have supplemented the yields that you have made on the money markets. There is a lot to think about. What are the yields here in the United States? What are the yields outside the United States and can you make or lose money on the currency and that's a little bit about money market accounts both in the United States and globally. I'm Roger Groh.

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