Are you weighing up your options for your money? It’s an unsettling time to be thinking about where to invest.
If you put it into the property, house prices are likely to come down in the major cities as people adopt remote working and move to the countryside. Crypto is risky and your money can fluctuate wildly, as it can be linked to geopolitical events like the trade war with China. Normal savings account offer minimal interest.
Luckily, money market settlement funds are one safe place to invest your money. Here’s everything you need to know about settlement funds.
What Is a Money Market Account?
What is a settlement fund anyway?
A money market account is a type of settlement account that has many of the same features as a savings account, only it can pay a higher rate of interest in certain circumstances. It shouldn’t be confused with other similarly named account types such as the money market mutual fund (MMDA).
As well as signing up for a usual bank account, you can also sign up for a money market account with a credit union. This is perfect for older customers or those who don’t have the right documentation to get an account with a traditional bank.
As a customer, you will be generally expected to invest a certain amount of money upon opening the account and agree to keep it at that level. Regular monthly deposits are sometimes required. Then when you really need money you can draw on your settlement funds rather than becoming one of the average Americans who are $38,000 in debt.
Having an Emergency Fund
One of the key perks of opening settlement funding accounts like an MMDA is that it encourages you to have an emergency fund. Such accounts can penalize you if you withdraw money often rather than saving it.
They are great to host your emergency fund. This is money that you will only draw upon during an emergency, for instance, if you lose your job.
During good times, if you keep adding to it, you will see a slightly better return than a normal savings account.
Your emergency fund should usually consist of enough money to live off for six months while you search for a new job or opportunity to keep you ticking over. And when you do need to access your settlement funds, a company like Rightway can help you access them, hassle-free. Be sure to do your research and learn more about their services.
Money Market Settlement Funds Are Great for Building a Nest Egg
If you are wondering about where to put your money in this unsettling time, then money market settlement funds might be best for you.
They can encourage you to save your money rather than spend it during good times. When times are bad you can then draw on your savings, knowing you’ve been receiving a higher rate of interest than if you’d put in a banking account.
Equally, if you’ve had issues getting a bank account, then you can get an account with a credit union instead.
If you are interested in reading more about money marketing settlement funds then be sure to check out the rest of our site.