To be sure you are earning the most on your excess liquid funds you must be aware of money market rates in your market. This is not always easy, as the availability of all types of deposit accounts in everyone’s market has grown since internet based banking and financial institutions have developed.

The good news is, the more money market rates available, the more competition and the more likely you will be able to earn attractive rates on your account.

Finding money market rates is much easier than in the past. Years ago, you would have to call banks and ask for their rates and attempt to understand by phone the requirements and structure of their accounts. In today’s environment, this information is readily available on the internet. By doing simple searches and utilizing rate gathering websites, you can quickly find the most competitive money market rates for your deposits. Many times, better rates may be available for opening accounts online as well.

Money Market rates may be paid on tiers depending on your balance. Many financial institutions will reward you with a better rate for placing higher balances in your account. These money market rates may be increased for your entire balance once you reach a tier level or they may be paid higher just for the portion that is above the tier. Either way, you are gaining additional interest for placing more funds in an account. Be sure and compare tiers at different banks and understand how the tiers work in order to accurately compare money market rates between competing banks.

Money Market Rates Can Make A Hugh Difference

Once you have decided where to place your excess liquid funds, you may want to contact the financial institution and ask if the rates can be negotiated. Banks may offer better than published money market rates based on the balances you may bring to the bank or based on your total relationship with the bank. In other words, you may earn higher money market rates if you also have a checking account or loan with the bank. Finding this out may earn you even more return on your deposits. It never hurts to ask.

Be sure before settling for any account for your excess liquid funds, that you shop and compare money market rates. With the ease of comparing online and the greater market as a result of online banks your can easily increase your return with very little effort. And always remember to ask for more, it never hurts to try and negotiate a higher money market rate.