Anyone know anything about Money Market accounts?

[ThePhantomOak]

I am looking to open one with Wells Fargo and the APY is an amazing .05% in Nv and .1% in Ca (compounded daily)
$10,000 in a month would be $10,000.82

Bankrate.com shows this with the highest being ~3.6% APY and the major banks being WELL below that... What is the deal?

In the two money and banking classes I had for my degree, we never got into how a major federal charter bank could have such low yields while the rest of the wold has alright yields... We just talked about where the yield comes from...

It also irritates the hell out of me that I really have ZERO incentive to save, given that inflation is between 6-14% right now (depending on who did the counting), and savings yields are at less than 1% at major banks and 3% at tiny banks...

I feel like I am better off blowing my money on potato chips...

[mikejet]

How old are you? Whats your long term goals for investment? Do you want to have access to the money incase of emergencies?

With 10k I would consider a good performing stock that pays out quarterly dividends and set it to DRIP and forget about it.

[sssick]

If you are looking to make money, putting it in a bank is not the place to put it. I do have a ING savings account though, just for emergencies.

[stockstar1138]

if you are looking to save money for a fairly lengthy period of time and want absolutely no risk at all, you should check out Certificates of Deposit. Much better than a money market.

Personally, i would take a little risk and buy a couple of long-term stocks with DRIPs like the poster above said.

stocks to avoid on the day: lehman brothers