Find Interest Rates on Money Market Funds
A money market fund is a cash account that is being held in reserve, rather than being invested in the market. Find out how interest rates vary on money market funds with help from a financial specialist in this free video on interest rates and loans.
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Hi, this is Matt McKillen with Innovative Financial Group. The question posed to me today is, How to you find out the interest rates on money market funds? Well, first off a money market fund is a cash account. Usually it's held with a securities firm or financial planner and what it is, it's cash that's being held in reserve that's not being invested in the market. For example, if you were to sell a hundred shares of stock the cash that you receive from that sale of that stock would in turn probably automatically go in to your money market account. And depending on the institution, the interest rate can vary. Some are more aggressive on their rates than others. It's very similar to interest in a savings account. Some banks offer better rates than others. So generally you need to talk to your financial planner or your investment company, find out what the current rate is on their money market account, whether it's fixed, whether it's a floating rate and then you can kind of determine what's the best place to hold that cash until you decide to reinvest it back in to the market, whether it's purchasing stocks or mutual funds or buying bonds. Again, the money market is generally a floating time period only. It's usually not money that's held for long term. My name is Matt McKillen. I'm with Innovative Financial Group.