Free Article: Financial
You are here:
Directory | Finance |
What Is My Bank Account Really For?
By Myles Johnstone
But bank accounts aren't designed to be investment tools. They're merely portals through which your money passes. In other words, you should move enough money into your non interest-bearing checking account to pay your bills each month, and that's about it. A larger reserve should be kept in a money market account, which will pay something on your money, maybe 2 to 4 percent. Not bad, but you could gain a couple of percentage points if you put your cash in a stock money market fund, like those found at Fidelity, Merrill Lynch, and other major brokerage and investment firms.
Here are the accounts you need:
1. Standard checking account. Make sure it requires only a low monthly minimum balance for free check-writing privileges.
2. A money market account in lieu of a savings account. You'll earn more money on your savings. This account does not have to be at the same place as your regular checking account. Indeed, you'll generally get a higher rate of return if your money market account is at a stock brokerage firm.
Author Details:
Myles Johnstone writes exclusively for finance related sites such as Refinancing Finance Info.com, Vehicle Finance Info.com and finance Solutions info.com
Source: Financial Articles
NOTE: This article may be reproduced ONLY if this note, the author details, source and ALL links remain in place and active.
Articles About Finance:
3 Drawbacks Of Having A Company Monitor Your Credit
4 Reasons Why Real Estate Is A Good Investment
5 Questions To Ask A Financial Planner
5 Simple Ways To Save More Money
6 Rules To Building Wealth And Satisfaction In Life
A Couple's Guide To Following A Budget
Amazing Opportunities Now And In The Future
Are You Financially Insane
Do You Sacrifice Integrity For Short Term Financial Gains
Does The Lack Of FDIC Insurance Make Money Market Funds A Bad Choice
Effective Ways To Reduce Your Federal Income Taxes - Part 1
Effective Ways To Reduce Your Federal Income Taxes - Part 2
Financial Success Through Personal Hard Work
Getting the Pay You Deserve
How To Become A Smart Borrower - Part 1
How To Become A Smart Borrower - Part 2
How To Invest Wisely
Into Mutual Funds - Be Sure To Diversify
Investing In Your Own Business
Minimizing Taxes On Funds
Planning For Retirement
Preparing For Your Children's College Education
Resisting Temptation To Spend Your Money
Simple Ways To Increase Your Savings - Part 1
Simple Ways To Increase Your Savings - Part 2
The Importance of Saving
Two Keys To A More Successful Career
What Is A Mutual Fund
Which Is Financially Easier - Renting Or Buying
Your 1st Step To Financial Freedom - Putting All Of Your Debts In Writing
A few more small articles about finance matters:
3 Rules That Debt Collection Agencys Must Follow
Credit Monitoring Services
Everybody Can Find Money To Invest
Marshmallows, Resisting Temptation, and a Satisfying Life
Need More Money - Then What Are You Doing About It
The Truth About Medicare - Will It Cover You When You Need It
What Are Dividend Reinvestment Plans
What are savings and money market accounts
What Do You Want From Your Money
What Is Estate Tax
What Is My Bank Account Really For
What To Do If You're Already A Victim Of Financial Fraud
See also: Credit Repair