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We can get several advantages from the money market savings account.Such as money market accounts have high yields, also can be used inside RRSP and other registered savings plan. You will earn a good rate of interest and anytime you can switch in to better investment in another type of fund. Money market account rates with the growth cash maximize account and interest is compounded daily and credited monthly.
Money market deposit funds are not covered by Canadian Deposit Insurance Corp (CDIC). Money market funds are regulated and dozens of money market funds invest billions of dollars of individuals and institutions money. We never heard of the industry causing an individual to lose even a penny of principle. The risk difference versus a bank account is nothing. Money market deposit funds invest in safe,short term bank guaranteed investment certificates, Government of Canada treasury bills, provincial treasury bills, and corporate commercial paper- which is issued by largest and most credit worthy companies. Money market fund investments mostly must have an average maturity of less than 180 days. Most of the mutual fund companies stands behind the money market deposit accounts. Money market deposit accounts are risk free because they are backed by the full strength and credit of federal government.