Investopedia

Money Market Yield

Dictionary Says

Definition of 'Money Market Yield'

The interest rate earned by investing in securities with high liquidity and maturities of less than one year such as negotiable certificates of deposit, U.S. Treasury bills and municipal notes. Money market yield is calculated by taking the holding period yield and multiplying it by a 360-day bank year divided by days to maturity. It can also be calculated using bank discount yield.

Also known as "CD-equivalent yield".

Investopedia Says

Investopedia explains 'Money Market Yield'

To earn a money market yield, it is necessary to have a money market account. Banks offer money market accounts because they need to borrow funds on a short-term basis to meet reserve requires and to participate in interbank lending. The money market yield will be lower than the yield on stocks and bonds because of the low risk associated with money market investments.

Related Video for 'Money Market Yield'

Articles Of Interest

  1. Money Market

    Learn more about this segment of the financial market and how it can cater to your short-term investment needs.
  2. Money Market Mutual Funds: A Better Savings Account

    An good alternative to the traditional savings account is the money market mutual fund. It's easy, safe and has better returns.
  3. Introduction To Money Market Mutual Funds

    Learn about the easiest way to benefit from money market securities.
  4. Get A Short-Term Advantage In The Money Market

    This investment vehicle is often the perfect stop-gap measure for growing your money.
  5. Getting To Know The Money Market

    If you need liquidity and safety on a sum of money, don't forgo potential interest by keeping the funds as cash.
  6. Do Money-Market Funds Pay?

    This investment provides security, but its returns may not be adequate for long-term investors.
  7. The International Money Market

    Banks, corporations, traders and speculators all use the IMM to borrow, lend, trade, profit, finance, speculate and hedge risks.
  8. The Money Market: A Look Back

    Learn how past inflationary periods can predict future real rates of return for cash investments.
  9. Zero-Coupon Bond

    A zero-coupon bond or ‘no coupon’ bond is one that does not disburse regular interest payments. Instead, the investor buys the bond at a steep discount price; that is, at a price ...
  10. Why Your Pension Plan Has Sovereign Debt In It

    One type of security pensions tend to invest in is sovereign debt, or debt issued by a government.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.
  2. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.
  3. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
  4. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
  5. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
  6. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
Trading Center
Array ( )
taggroups(for debug only):
Array ( [0] => Bonds And Fixed Income [1] => SEG (Investors) [3] => Investing [4] => Bonds [6] => SEG (Investors:Instrument-Bonds) ) time:9ms