Bank Money Market

A bank money market is similar to bank savings accounts. Consumers generally receive slightly higher interest rates compared to savings accounts because they are limited to six transactions per month. Bank money market accounts have adjustable interest rates contingent upon current fixed income markets. The bank money market account is regulated by the Federal Deposit Insurance Corporation. Holding such a money market in a bank IRA gives the IRA owner $250,000 in FDIC insurance on assets on top of the $250,000 in personal, non-qualified assets held at the bank.

Brokerage Money Market

Using IRA Money Market Accounts

Either money market is generally considered for its liquidity. Even the bank money market with its limited monthly transactions allows IRA owners access to money in a financial emergency. Both are also used as holding accounts while an investor decided what to do, whether to move into securities, certificates of deposit or even transfer the IRA to a real estate IRA custodian.

Considerations

References

More Like This

Money Market Withdrawal Rules

How Does an IRA Money Market Account Work?

How Safe Are Money Market IRA Accounts?

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