Tag Archives: Rates

Market Analysis

Make Your Investments Work For You Five Steps to Higher Money Market Rates

When you want an investment strategy that offers high interest without much risk, a money market account might be the perfect solution. Interest rates for money market accounts are generally based on rates that come from the Federal Reserve. Of course, the numbers can change daily, as the market goes up and down throughout the week. However, there are a few steps you can take to find an account with the best money market rates.

1. Do Your Research
Before opening a money market account, you should shop for offers from multiple banks. While rates fluctuate in accordance with the economy, some accounts also factor your rates based on your initial deposit or the amount you have invested. To find the best money market rates, determine how much you’re ready to invest upfront and how much you’ll be able to contribute in the future. With these numbers in mind, you can choose an account that offers great rates for your budget.

2. Have a Plan
You’ll typically find the best rates for your money market account when you’re able to make a large deposit upfront. Most banks have a general minimum balance requirement for your first deposit. Some banks also categorize your account based on your deposit amount or the amount you’re planning to invest later on. If you’re close to the minimum required amount for the next category, it might be worth waiting to invest until you have more saved, as you’ll be able to secure a higher rate.

3. Choose the Right Time to Invest
Keep an eye on money market rates before opening your account. Though you’ll never be able to get a guaranteed rate, you can predict what the market is likely to do in the short-term future. If the market is experiencing a low period, you might want to wait a couple months before putting your funds into a money market account. You won’t lose money by investing too early, but you could earn more by waiting just a little longer. Of course, you shouldn’t put off your investments indefinitely, as this causes you to effectively lose money you could be earning. Consult a financial adviser to determine the best time to open your money market account.

4. Watch for Better Offers
As you invest, look for offers that allow you to upgrade your account status. Many banks will raise your account to the next category when you reach a new investment tier. By paying attention to the amount you’ll need to invest, you can create an effective strategy for putting money into your account. It doesn’t hurt to look for deals from other banks, but you’ll typically have greater success by maximizing your existing account’s potential. Additionally, if a new investment will cause your rate to change, you should try to coordinate the deposit with a period of market growth.

5. Keep Your Balance Stable
Money market accounts are flexible, offering many of the same benefits as checking and savings accounts. You can withdraw money, write checks and make deposits like you would with a traditional checking account. However, you will find better results when you treat your account like a savings account. Avoid taking too much money out at once, as you should be careful to never let your balance drop too much. Maintaining a high balance can make you eligible for better money market rates and upgrades on your account. If your account has a maximum allowed balance, consider investing your surplus into another money market account or in another investment vehicle, such as a certificate of deposit or an individual retirement account.

Market Analysis

How to Analyze Money Market Rates

A money market account combines the thrill of a short-term, high-yield investment with the security of a savings account, which often intrigues new investors. Much like a savings account, this type of account is accessible – meaning you can transfer money from your checking and savings accounts to it, and you can even write checks against this account. Yet it still offers higher interest – or money market rates – than a standard savings account. If you’re considering this investment tactic, you’ll want to be sure you comprehend the basics about rates on money market accounts:

Understand why money market accounts offer higher rates. This is because unlike with a savings account, the financial institution you’re partnering with is able to use your funds to invest in its own capital. Although you’re in a low-risk situation, the banks may wager your money in higher-risk gambits, such as federal securities and bonds. The bank owes you only the money market rates discussed on top of your initial investment, regardless of how much money it makes (or loses) in this time. Because you give the bank the chance to make money for itself with your money, in turn it pays favorable interest rates for this type of account.

Compare an array of rates from top banks. You’ll want to assess at least five banks’ rates to be sure you’re getting a competitive rate that accurately reflects the current market. Most sites offer calculators that can help you determine how much money you stand to make during the length of an agreement – typically about a year – given the current money market rates.

Know the money market rates are not the bottom line. In addition to figuring out the best annual yield (with compounded interest over time, if the length of term allows it) and how much money you’ll walk away with, there are other factors to compare. For example, some banks require a higher original deposit than others. Or you may need to sustain a certain minimal balance at all times. Some may have steeper fees if you need to cancel your account or if you accidentally withdraw more times than allowed per term (typically 3-6 per month). Start-up fees may simply be higher at some banks, negating the high money market rates offered. Look at the big picture and total costs before settling for what seems like the best money market account offer.

Market Analysis

Accounts With High Money Market Rates Offer Top Benefits

Money market accounts combine the benefits of checking and savings accounts, giving you the flexibility to write checks from the money you’re investing. To get the most benefits from your investment account, you’ll need to find a bank that offers great interest rates. Your bank won’t always have control over the rates they can offer, as money market rates are determined largely by the interest rates set by the Federal Reserve. However, with a bit of research, you can enjoy a money market account that offers great rates and other benefits.

Watch Your Savings Grow with Higher Interest Rates
Money market rates change frequently and are subject to the state of the economy. You might not be able to count on a set rate like you would with other types of investment accounts. But you can earn higher interest rates when the market is performing well. With a higher rate on your investments, your savings will grow more quickly. To qualify for higher rates, you should plan your investment carefully and research offers from different banks. Investing a large amount at the right time can help you become eligible for better rates.

Flexible Plan Allows You to Withdraw Funds
Spending from a money market account is generally much easier than withdrawing from a savings account. However, there is typically a limit to the number of checks you can write or withdrawals you can make in a single period. Though checking accounts have fewer restrictions, money market accounts allow you to earn interest on your savings while still giving you access to your funds.

Your Money is Protected from the Market
Whether the market reaches an all-time low or hits peak levels, investments in a money market account are always protected. Money market rates are still influenced by the state of the economy, so you will have to account for fluctuating rates. Interest levels can change, but the money you’ve deposited in your account will never be lost. When you’re trying to invest in an unpredictable economy, this is an important feature to consider. Your money is also FDIC-insured, so you’ll never have to worry about losing your investment to a market or bank crash.

More Reliable than a Money Market Fund
It’s important to understand the difference between a money market account and a money market fund, as people often confuse these investment vehicles. While they may sound similar, they actually offer significantly different investment strategies. Money market accounts protect your money in an uncertain market. Your interest rates might change, but your balance will never be affected. However, a money market fund actually invests your money into mutual funds. If the market crashes, you can lose everything you’ve invested. Money market funds are more similar to other investment vehicles, while money market accounts have more in common with standard checking and savings accounts. Before opening your new investment account, be careful to confirm which type of money market product you’re receiving.

Earn Higher Rates with a Higher Balance
When you open a new money market account, your interest rates are influenced by your initial deposit amount. Investing higher amounts can help you become eligible for better interest rates. Banks usually have a minimum deposit required for money market accounts, so you should be sure that you qualify for a high rate before setting up your investment. In some cases, it might be best to delay your investment until you have enough money to reach the next category. Once your account is already opened, you’ll become eligible for higher money market rates by maintaining a high balance and making additional deposits.

Forex Trading Articles

Foreign Currency Rates Are Vital When Sending Money Abroad

Communication and Technology are the two main factors with the advancement of which the whole world became interdependent. International trading became the biggest and the fastest growing market and this gave rise to foreign currency exchange, which is now the largest finance market of the world. Any international transaction or even sending money abroad requires one to perform currency exchange and hence foreign currency rates make a big difference.

You might be thinking that you just need to send money abroad now how does foreign currency rates plays a vital role in this scenario. Well that is because the foreign currency rates keeps fluctuating every second and this frequent change can let you lose money. See below example how it makes difference:

Suppose you are sending 10,000 USD to your family in the UK. The foreign currency rates are 1 USD = 0.61 GBP, it means your family will be receiving approximately 6,165 GBP. Now if you postpone to transfer money by an hour perhaps, and the currency exchange rate now is 1 USD = 0.57 GBP, this means your family will receive 5700 GBP, which is almost 500 GBP less in a matter of one hour while the amount you sent is still the same. This situation can be vice versa if the currency exchange rate increases. Hence even a small fraction of change in the foreign currency rates can lead you to make profit or loss when you exchange the currencies.

There are many sources which facilitates International money transfer, though foreign currency rates is the must to be considered factor when selecting a right service provider. As many providers may serve quick and fast service the currency exchange rates provided are very poor, hence be conscious if you want to save your hard earned money. Below are some advises to choose money transfer service providers, yet it is highly recommended to only choose one who can get you the best possible foreign currency exchange rates when you transfer money abroad :

1) There are many agencies who provide money transfer service for e.g. western union, money gram, etc. though they will not be the best providers when it comes to foreign currency rates.

2) Newly introduced and widely used ATM cash card service allows the sender to deposit the amount on the card number which can be withdrawn by the card owner from any ATM in its own country. There are some charges which will not make you so happy.

3) Bank wire transfer is the most secure way to perform international money transfer. On larger transactions you may avail good currency exchange rates. Though there is limitation of services not available at non working hours and weekends.

4) Foreign exchange or Forex companies are the best medium to perform international money transfer. Fx professionals have tie ups with large banks and are successful in getting you the benefit of lowest currency exchange rate. Top of this they charge very low or no brokerage for their services and hence are the best option when you consider savings while transferring money abroad.

Forex Trading Articles

Currency Floating Exchange Rates

Currency FloatingExchange Rates A traditional argument in favor of flexible exchange rates is that they insulate output better from real shocks, stock tips because the exchange rate can adjust and stabilize demandfor domestic goods through expenditure switching. This argument is weakened in models with high foreign currency debt and low exchange rate pass-through toimport prices. The present study evaluates the empirical relevance of these two
actors. A floating exchange rate or fluctuating exchange rate is a type exchange operator trading tip rate regime wherein a currency’s value is allowed to fluctuate according to the
foreign exchange stock market. A currency that uses a floating exchange rate is known as a floating currency. There are economists who think that, in most circumstances,
trading tips floating exchange rates are preferable to fixed exchange rates. As floating exchange rates automatically adjust, they enable a country to dampen the impact of shocks and foreign business cycles, trading strategies and to preempt the possibility of having a balance of payments crisis.

This may not necessarily be true considering the results of countries that attempt to keep the prices of their currency “strong” or “high” relative to others, share tips such as the UK or the Southeast Asia countries before the Asian currency crisis. The debate of making a choice between fixed and floating exchange rate regimes is set which argues that an economy cannot simultaneously maintain a fixed exchange rate, trader free capital movement, and an independent monetary policy. It can choose any two for control, and leave third to the stock market tips forces. In cases of extreme appreciation or depreciation, a central bank will normally intervene to stabilize the currency. Thus, trading strategies exchange rate regimes of floating currencies may more technically be known as a managed float. A central bank might, for instance, allow a currency price to float freely between an upper and lower bound, a price “ceiling” and “floor”. Management by the central bank may take the form of buying or selling large lots in order to provide price support or resistance, in the case of some national currencies, stock market tips there may be legal penalties for trading outside hese bounds. Unlike the fixed rate operator share tips a floating exchange rate is determined by the private market through supply and demand. A floating rate is often termed “self-correcting”, as any differences in supply and demand will automatically be corrected in the market.

Take a look at this simplified model if demand for a currency is low, its value will decrease, thus making imported goods more expensive and stimulating demand for local goods and services. This in turn will generate more jobs, tock trading causing an auto-correction in the market. A floating exchange rate is constantly changing. In reality, stock market no currency is wholly fixed or floating. In a fixed regime, market pressures can also influence changes in the exchange rate’ central bank will often then be forced to revalue or devalue the official rate so that the rate is in line with the unofficial one, insider information thereby halting the activity of the black marketing a floating regime sure short tips the central bank may also intervene when it is necessary to ensure stability and to avoid inflation however it is less often that the central bank of a floating regime will interfere. From then on, major governments adopted a floating system and all attempts to move back to a global peg were eventually abandoned in 1985. Since then operator stock trading tips no major economies have gone back to a peg, and the use of gold as a peg has been completely abandoned.