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High-Yield Saving Accounts: What to Know When Looking at Putting Your Money in Money Market Accounts


Over the past year, high-yield money market rates have increased significantly, making them an attractive option for those looking to earn a higher return on their savings. However, it's important to understand the factors driving these rates and what to consider before investing.


Here are some key factors to keep in mind:


- Recent increase in interest rates: When interest rates rise, fixed-income securities like money market accounts tend to offer higher yields as investors demand greater returns to offset the risk of inflation eroding their purchasing power.


- Potential impact of inflation: While high yield money market accounts can provide a safe and relatively low-risk way to earn a higher return on your savings, it's important to be aware of the potential impact of inflation on your long-term purchasing power. If the rate of inflation is higher than the rate of return on your investment, you may still lose buying power over time.


- Differences from traditional savings accounts: Money market accounts typically have higher minimum balance requirements and may have limits on the number of transactions you can make each month, as compared to traditional savings accounts.


- Fluctuating interest rates: High yield money market rates may not last forever. While they can be an attractive option for earning a higher return on your savings, interest rates can fluctuate over time.


Overall, high yield money market accounts can be a good option for those looking to earn a higher return on their savings while maintaining a relatively low level of risk. Just be sure to understand the factors driving these rates and carefully consider your own financial situation

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Full Circle Financial Planning

4112 South Cedar Street

Lansing, MI 48910

email: info@fullcirclefp.com

phone: 517-220-2155

text: 517-225-2570

fax: 517-481-2267

Meetings by appointment in Shelby Township, MI 48316

Securities offered through Sigma Financial Corporation, member (finra.org)FINRA/ (sipc.org)SIPC. Investment advisory services offered through Sigma Planning Corporation, a registered investment advisor.

Full Circle Financial Planning is independent of Sigma Financial Corporation and SPC.

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