money market vs savings account

susie100January 28, 2014

I am supposed to close on my home Friday. I haven't found a house to buy so I am storing my household and staying with DD until I find a house I like. My question is: what to do with the money from the closing until I can buy a home. The bank suggested a money market account as it is liquid and I can close it when I want to buy without a penalty. Are there any fees associated with a money market? What are the risks? What is the difference between a regular savings account and a money market? Thank you.

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sushipup1

Call Charles Schwab and ask. It isn't insured but it is liquid. To get any measurable interest rate, you have to get a CD and tie the money up for 6 months or more.

The bank is not your only option. Try Schwab or a credit union.

    Bookmark   January 29, 2014 at 12:25AM
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dadoes

My bank offers a fully liquid (in terms of closing, it's limited otherwise to the usual 6 withdrawals per statement cycle) and insured (up to FDIC limits) MMA that earns 0.15%. I don't know what are current CD rates for comparison.

    Bookmark   January 29, 2014 at 6:09AM
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