Ch.5 advantages and disadvantages DC personal finance - Maxted
money market mutual funds disadvantages
administrative fees, minimum initial investment, not insured, minimum checks
asset management account disadvantages
costly, minimum initial investment, not insured
certificates of deposit disadvantages
early withdrawal penalty, fixed interest rate, minimum deposit required
money market mutual funds advantages
high interest rates, check writing, limited risk, convenient
money market deposit account disadvantages
high minimum balances/penalties, interest rates below alternatives
savings accounts advantages
liquid, safe - federally insured, and earns higher interest than a checking account
US savings bonds disadvantages
low liquidity, long maturity, semi-annual compounding
US treasury bills (T-bills) disadvantages
low rate of return
savings accounts disadvantages
minimum holding time, charges/fees, low interest rate, inconvenient
asset management account advantages
monthly statements, coordination of money management, checks, high return, convenient
US treasury bills (T-bills) advantages
risk-free, exempt from state and local taxes, federal tax vary with current rates
US savings bonds advantages
safe, affordable, no taxes, convenient, redeem at any bank, no commission or fees
Money Market Deposit Account advantages
safe, earns interest, check writing privileges
Certificates of Deposit advantages
safe, fixed interest rate, convenient