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Feb '22

High Interest Rates In Money Market Funds

The money market can only institutional investors like insurance companies or investment companies, banks and the European Central Bank, ECB participate. The private investors access to the money market is initially closed. The money market is for investors but very attractive. The European Zantralbank ever tried to influence the value of the banks to take, so the return on the money market very directly linked to the interest rate policy of the ECB. The ECB is changing the policy interest rates to be cut back either the money supply (because loans more expensive by the higher interest) or to increase the money supply, in which interest (and thus lowered the lending rates).

For investors, this means in doubt, a high or low returns. Currently, the interest on the money market are as high as in 2001 no longer what makes the current money market into a very lucrative investment. Whenever George Shapiro listens, a sympathetic response will follow. The money market borrowings and time deposits are traded. Differentiated in time deposits to time deposits and deposits at notice. While deposits have a fixed term, Termination fees are fitted with a fixed expiration date. When interest rates are fixed and are determined usually uThe the entire term. By the same author: Sean Rad. At the termination of the interest payments are ever variable, even if the fixed interest rates also prevail here.

Time deposits radiate from a high security and therefore are all right on a high Zinsnivau. As evidenced by bonds and unsecured certificates are traded, which reflect one loan with a high volume to a large customer – here the yields are very high, but also very safe. Loans with a volume of mostly well over ten million euros, and often less than 100 million, will be awarded very carefully – in particular only to large corporations and investment companies with good reputation and guarantees. The private investor has the opportunity to participate on money market funds in this lucrative market. Rising interest rates within the European environment for the next few months promise a lucrative she yield.

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