Best Money Market Account Rates

The money market is where banks, credit unions and financial institutions from Australia, and around the world, go to do business. For banks, that business is buying and selling money, credit and debt, and on the Australian short term money market, the turnover is $25 million every day. So there is a lot of money to be made if you have the right information and the right access to trade on the money market, and luckily for you, if you’re interested in investing in and profiting from the money market, more and more Australian banks now offer money market savings accounts.

Features of a Money Market Account

A money market account can offer you some of the best rates in Australia on your savings, and you can also feel secure because you are investing with the bank, and your deposits remain secure. A money market account:

• Pays high interest on your savings. Money market accounts can pay you the best interest rates because they are at the forefront of the financial markets. Therefore, money market investors know the financial conditions and can predict future movements, allowing you to secure the best interest rates no matter what else is happening or about to happen to official interest rates and traditional investments.
• Require significan’t investment deposits. Money market accounts often have a set minimum balance requirement, this amount can be anywhere from $1,000 minimum deposit to $10,000 minimum deposit and upwards. Larger deposits are required for money market accounts because the money market is where the banks make their money, and they need larger investments to do so. Higher minimum balance requirements are also of benefit to your investment, because the more money you have invested, the more there is earning interest, and the more interest you are earning.
• Daily interest calculations and monthly returns. When you invest in a money market account, your interest is calculated daily, and compounds to a monthly credit.
• At call money market accounts. The funds in your money market account can remain at call for the duration of your investment if you need access to them, or you want to make additional deposits. This allows you to continue to grow your investment, while having access when you need it. Depending on your provider, you may need to apply for access to your funds the day before you need them so they can be retrieved.
• Earn the best money market account rates on fixed terms. The highest money market interest rates are paid on fixed investments and these terms can usually be between one month and two years, with interest rates tiered for longer investment terms.
• Fee free saving and investments. Money market accounts also require a higher minimum balance amount to ensure you avoid paying fees on your account, and if you balance drops below the minimum amount you may incur a monthly fee. Instead, you can generally access a set number of free deposits and withdrawals in a month, access your money at branches, or via phone or internet banking, and automate deposits to your money market account from your wages. Money market accounts often include the option to have bank cheques issued from your account balance to make payments or purchases, and a generous number are often included for free each month.

Investing in a money market account may seem daunting or confusing, but it is just as safe as a savings account with any bank provider and has the ability to earn you higher interest than a traditional online savings accounts. For the best money market account rates on offer right now, view our comparison tables here. You can also apply for a money market account online, over the phone or in branch, just as you would for a high interest savings account, but these can be even higher.