Are there any considerations I should make before placing my money in a Money Market Account?

Question

I have about $4,400 I have saved, and wont be needed it any time soon. Would it be wise to place these funds in a Money Market Account? What questions should I ask the bank? Any answers will be appreciated. Thanks!

Answer 1

a money market account is very safe but it doesn't have a very high rate of return.  A short term CD might be better.  The main question to ask is what is the interest rate on the money market

Answer 2

Well if you place your money in to a money market you won't be able to take any out without being penalized.  Another thing with a money market is that you have to have a minimum amount in order to get one.  Around here it's usually around 5k to get a decent interest rate.  I suggest placing the money in to a CD,  usually you get a much better interest rate.