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A Better Place to Park Your Money
Posted By Ron On January 28, 2011 @ 5:45 AM In Banking,Money | Comments Disabled
I’ve long been a proponent of each person having a savings account  but they have some drawbacks. Chief among them are the inaccessibility of your cash and the dismal interest rates – just slightly above the “keeping it under the mattress” rate. Is there a better place to park your money? Is there a better place to keep your emergency fund  than just a savings account  — particularly one that earns little to no interest?
A money market account  is a type of savings account that gives you better access to your money. It’s a savings account with checks! Federal law allows you to make up to six withdrawals per cycle, though your deposits can be unlimited. And your account is FDIC  insured. Not a single person has lost money in a bank or credit union that was insured by the FDIC since it began.
You may be able to get a better rate with a CD , but access to your money will be very limited. Take your money out before the term of the CD ends and you’ll pay an interest penalty.