Highest Money Market Account Rates: 2015 Edition

Today I want to tell you about money market accounts. Imagine that you've just come into a lump sum of money, and you want to stash it somewhere safe. You might bury it in the backward, but what if you forget its location? What if someone breaks in and steals it all?

Your next best bet is the bank. You could put it into a savings account. That's the conservative choice, but you're unlikely to earn much of a return.

Looking down the road, your choices become more risky. You could put it into bonds -- still pretty safe, but with better returns. Then there's the stock market. Dangerous yet lucrative. Final option: place it all on the longshot at the track.

If you're the more conservative sort, or you expect that you're going to need the money again in the future, you can put it into a money market fund. For the individual, it's just like a savings account. Safe, withdraw whenever, write checks, stuff like that.

They're implemented differently, though. Unlike banks, which earn interest by lending, money market returns invest in short term securities. These short term investments are things like CDs and t bills. And they may have higher yields -- see, for instance, this post on highest money markets rates in 2015.

So: should you invest in a money market? That depends on your goals: if you might need the money in the near future, like for an emergency fund, then a money market is a good choice. A money market isn't suitable for your retirement savings, however. If you want to be set when it comes to retiring, place it into an index fund or bonds.