Question : what is the risk involved with a high yield money market account offered by Capital one bank?

high yield money market accounts

Best answer:

Answer by www.promoneytalk.com
Hi. I’m a financial planner in California and I’ve been seeing quite a few of the high yield money markets coming up lately. I’ve researched quite a few, ING, Chase, etc. Basically what the banks are doing is offering very good rates on money markets to get you in the door.

They do this now because 1) short term interest rates on government fixed income securities have gone up quite a bit over the past year which means they can pass the earnings along to you 2) there is a lot of worry right now as real estate cools and the stock market dips among investors, so they are looking for a safe place to put their money.

As with most banks and credit cards, once you have money there they will encourage you to open a brokerage account and invest in their mutual funds. They’ll pass along “special offers” and such in an attempt to get more of your business in their more lucrative offerings.

I tell my clients to sign up with if they want the high yield but to throw away all the marketing materials sent to them. Other brokerages, such as Charles Schwab or TD Ameritrade have good money markets if you have enough money with them with less hassle.

If you’re interested in learning more about personal finance related issues please visit my podcast, www.promoneytalk.com It’s free and it’s the #1 rated personal finance podcast in the world.

Hope this helps,

Jason