HSBC Money Market Accounts

A money market account is an investment vehicle that is relatively low-risk and pays more interest than a checking or savings account. A money market account offers higher interest rates because the bank uses your money to grant loans to other patrons at an even higher interest rate, which is where your earnings come from. It’s basically like the bank is paying you for the temporary use of your funds. Because they want your funds to stay in the account there are penalties imposed if you drop below a certain minimum or make more than the allowed number of monthly withdrawals.

The bank will invest your money into safe, low-risk vehicles like certificates of deposit or treasury bills, for example. Another thing you should know is that your money market account is insured by the FDIC up to $100,000. A money market account is great for a new investor, or an investor who wants to diversify his or her investments and delve into investments with varying levels of risk. One bank you may want to look into when seeking this type of account is HSBC.

HSBC money market accounts come with a variety of appealing features. If you have a relationship checking account with HSBC you can get a Premium Money Market Plus savings account. This account is so easy to apply for, you can even do so online. There is no minimum balance requirement, no monthly fees for your relationship checking or money market savings accounts, free bill pay and Internet banking, the ability to automatically transfer funds and make payments, easy direct deposit and a combined statement to cut down on paper and hassle.

There is a different type of HSBC money market account called Premier Investor Savings. This particular type of money market account offers a higher yield than the one described above, but the requirements are more stringent. While there aren’t requirements for your opening balance, it is necessary to have a balance of at least $25,000 to earn the premium APY rate. There may be other requirements for this type of account as well which you can discuss with a customer service representative at the bank.

In addition to HSBC money market accounts, there are other banks and even credit unions that offer insured money market accounts. Financial institutions compete for business by trying to outdo each other when it comes to the APY rate. So, you may want to do some checking around before you decide on which bank or credit union is right for you. One thing is certain, regardless of where your account is held a money market account is a wise investment to have.

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