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Both Money Market Accounts and Money Market Funds are designed to house funds earmarked for shorter-term use.
11 May 2021 06:50
Image: Waldo Swiegers/Bloomberg
Because their names are so similar, many people are unaware of the differences between a Money Market Account and a Money Market Fund and, as a consequence, are not aware of the different purposes that these two structures are designed to achieve. Money market accounts and funds are very different in respect of how they are regulated and structured, what interest is paid or earned, how fees are charged, the risk that they present to the consumer, and how they should best be incorporated into oneâs portfolio to ensure they are fit for purpose.
The top rate in our fixed rate bond savings chart this week came from Gatehouse Bank, with the five-year version of its Fixed Term Green Saver paying an expected profit rate of 1.40% gross on anniversary. Gatehouse Bank also topped the three year fixed rate bond chart this week with the three-year version of this account paying an expected profit rate of 1.10% gross on anniversary. Both accounts require a £1,000 minimum deposit to open. These accounts have the benefit of Gatehouse Bank planting a tree in a UK woodland project certified by the UK Government’s Woodland Carbon Code when an account is opened and funded. They must be opened and managed online.