What is the difference b/w a High interest savings account and a money market account?
They seem similar from what I read. I have a High Interest account and I'm wondering if I should get a money market account as well to be more diversified and earn more money? I am 22 and don't plan on taking any amount of money out at all for at least 10 years to put a substantial down payment on a house if that helps for 'example' purposes. Thanks.
Yeah they are similar as far as their yield goes. A high interest bank account allows you to withdraw or deposit your money at any time. Some money market accounts require that your money stay in for a certain length of time (typically no longer than 1 year).
If you know that you won't need to withdraw your cash for at least 10 years though consider something that has an even better yield. Most insurance companies or banks will offer CDs (certificate of deposits). They yield the best when you put your money in for longer. For example a 5 year CD might yield 4% (per year) and a 2 year might only yield 2%.
If you have a bit more guts now is also a great time to invest in the stock market (since it is very low). The stock market fluctuates from year to year up and down, but over a 10 year period it will do much better than any bank account. (That's where the insurance companies that take your money market funds put your cash).
To do that you will need to talk to an investment advisor, or just open up an online trade account with an online broker like scottrade or Tradeking. (I recommend tradeking cause it's cheaper). It's pretty self explanatory how to buy. Since you probably don't want to try to figure out which stocks to buy just buy the index fund, ticker symbol SSO. One share of this index will automatically buy you an even amount of every stock in the S&P 500. That way you will earn your dividends as your money grows in value over time.
Good luck!