As a college student, you’re probably not making a lot of money, but if you’re saving money, you might as well make a little bit on your money, rather than having it sit there collecting nothing.

Many students, and Americans today make the mistake of leaving their money in a typical bank’s account.  These accounts, sadly only give you a tenth of a percent.  Let’s say you have $1,000 in your account,  you’re going to most likely make $3-5 a year.  Sure, it’s better than nothing, but what if I told you that you could make $30 a year with that same $1,000 guaranteed?

I know that $30 a year doesn’t sound like a lot, but for every $1,000 you invest, you’re going to make $30 per that $3,000, considering that the interest rate on your money market is 3%.

What is a money market?

A money market is very similar to a savings account, but generally have restrictions.  These restrictions may entail a certain amount of transactions per month, etc.  For example, some banks may only allow you to make 5-10 transactions per month.  If you agree to this, they will reward you with a higher term.  This type of account is going to need less maintenance, therefore you’ll get a higher interest rate.

How do I find one?

In my opinion, I would start your search online.  Banks like Ally Bank offer fantastic rates across the clock when it comes to a money market.  Keep in mind though that a money market account can change when it comes to your rate.  Unlike a CD, a money market rate is very flexible.

What do I look for?

As a college student, make sure you get an account that doesn’t require a high minimum balance such as $5,000.  Unless you have this kind of money, go for it, because you may get a higher rate.  Also, make sure that you look for a bank that’s FDIC insured.  This way, if the bank goes under, your account will be insured.  Last, always make sure you get the best rate.   Check out websites such as Gotalkmoney.com that help you find the best money market rates.