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To get an up to date look at what rates are available, here is what you should do.
Get a copy of a financial publication such as the wall street journal, investor’s business daily or baron’s. They all offer extensive lists of what invest rate different money market funds are paying. Similar information can also be fund in USA today or possibly even your local paper.
Go to www.bankrate.com if you have access to the internet. This web site not only allows you to compare money market rates being offered by different institutions but also indicates the minimum deposit each requires to open an account. In addition, it allows you to sort banks by state, which is important since some banks can offer tax free checking and money market accounts, depending on which state they and you happened to be in.
Once you have gotten an idea of what kind of rate are available, you will be in a better position to question the institution that is currently holding your rainy day money. If it is a bank, pick up the phone and call them. Ask what kind of interest your money is earing. If the answer is zero, ask if they offer money market accounts. If they do, ask them what you need to do to open one and how much interest it would pay. Then compare the rate to what you have seen elsewhere.
Based on this comparison, you may decide that it makes sense simply to move your emergency funds from the none or low invest bearing account they are in now to a money market fund at the same bank. If this turns out to be the case, keep in mind that all it took for your money to start earning interest was for you to start asking the right questions.
Remember, the rich get rich because they make their money work for them. Now it is your turn to do the same.
