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