While some financial experts use historical money market rates to extrapolate different economic trends, you can use these rates as a practical gauge for evaluating your long-term savings goals.
Where can you find historical money market rates? Several websites publish this information. At Bankrate.com for example, you can quickly find out different money market rates from many different banks dating back as far as five years.
Why would you want to know historical money market rates? For starters, these rates, along with a bit of knowledge about what was going on in the economy during the given time period, can help you make the connection between your finances and the larger economy.
For example, if you view the five-year trends in the national average of money market rates compared with the national unemployment rate for that same period, you'll quickly see that there's an inverse relationship between the two. (When unemployment tends to be up, money market rates tend to be down, and vice-versa.) There are other economic indicators that have this kind of relationship as well. With that, you've gained some economic knowledge without much effort at all.
Knowledge is only as good as its application, however, so aside from impressing your friends, what can you do with this insight? For one, it can help you make more informed financial decisions and provide a "check and balance" against the information you're getting from various news media.
So there you have it: historical money market rates can be a good thing to understand when you're trying to manage your own financial goals as they relate to the larger economy.
Now that you've taken a small step towards deepening your understanding of the world of finance, maybe it's time to consider the Money Market Account at Ally Bank. With an Ally Bank Money Market Account, you get a variable rate that's consistently among the most competitive in the country, and there's no minimum balance to open. Also, we won't charge monthly maintenance fees or ATM fees and we’ll even reimburse any ATM fees charged by other banks nationwide. With your new account, you’ll get free standard checks and a debit card. Federal law limits checks and certain types of withdrawals and transfers from Money Market Accounts to six per statement cycle. You can make as many deposits as you wish. If you need access to the money in your Money Market Account, you can make unlimited ATM withdrawals or call us anytime and request a check made payable to you.
You don't have to be an economic wiz to know that the Ally Bank Money Market Account can make a great addition to your portfolio, and it's easy to get started. Visit AllyBank.com or call live, 24/7 customer support at 877-247-ALLY (2559) today.