Money Market Investing
By Jayme Hanson

Money market investing will offer you many of the features as investing in certificates of deposits. The investment is a relatively safe investment. The difference between money market investing and certificates is that money markets have the added feature of a checking account. A money market is technically speaking the same thing as a mutual fund that attempts to keep its share price at a constant $1.00. Usually the funds deposited in money market investing will be handled by professional money managers who will invest the funds in government t-bills, savings bonds, certificates of deposit and other safe and conservative financial investments. The income generated from these investments is then paid out to the owners of the money market.

A money market account can be opened at most financial institutions. Once the account is opened the investor will receive a checkbook which they can then draw out funds from the account. The

easiest feature of money market investing is you can easily deposit money in a money market account. Cash is immediately available for alternative investments if you wish.

The negative for money market investing is that some financial institutions will only allow a certain number of checks to be drawn of the account during the month. Also the interest rate for money market accounts is directly proportional to whatever assets the investor has deposited and not the maturity of the account as is the case with a certificate of deposit. Therefore, money market investing is going to benefit the investors that can afford to invest larger amounts of money.

The major difference between investing in certificate of deposits and money market investing is that with a money market account you have access to your capital investment and don’t have to wait for the account to reach maturity as you would with a certificate of deposit.