How Does a Money Market Account Work?

[Uglyowl]

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so the ING/Emmigrant accounts are of the deposit variety, and so is PayPal's

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Emigrant and ING are deposit FDIC insured accounts. Paypal is a MM mutual fund.

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The average American never ceases to amaze me with his level of cluelessness and inertia in regard to finances.



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So, so true. Bank of America is offering 0.55% on their savings which is typical for your large B&M bank. Yet these guys continue to thrive on the backs of "stupid people".

There are now CD specials running you will not find on bankrate.com as they are for unusual terms (i.e. 16 months) that do not fit into their search. A few institutions are offering 5.0% CD specials and should be fairly common soon. Some banks are trying to hit there 2005 deposit goals and are offering great rates now.

[buffett]

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Bank of America is offering 0.55% on their savings

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And check out their CD rates as compared to most of the others (I think you can get this type of stuff on bankrate.com). BAC mgmt. won't admit this publicly, but it's as plain as the nose on your face: they have actually adopted the strategy of NOT attracting these types of assests. They're actually TRYING to repel new customers (and "entice" their current customers to leave), and yet the inertia of the system is still keeping those assets there.

(If you're interested in a more in-depth analysis of BAC, this strategy, etc., see Tom Brown's writings on bankstocks.com.)