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Countrywide Money Market

By: EconomyWatch Date: 23 November 2010

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Introduction to the countrywide money market

The Countrywide money market provides a higher interest rate on its checking money market account as compared to its savings account. Together with this it provides liquidity and flexibility to the money market checking account.

Before going through details regarding the countrywide money market, it is important to know about the Countrywide Bank that participates in the money market.

Brief History of the Countrywide Bank

The Countrywide Bank is a subsidiary of the Countrywide Financial Corporation , which is a member of the Federal Deposit Insurance Corporation . The Countrywide Bank took birth in May 17, 2001.

The Countrywide Bank is different from other traditional banks because they cater to the needs of their customers by offering them higher rates of interest on their account. This is possible for them because they keep very low overhead costs . The business model designed by the Countrywide Bank is the best in the industry and customers get more for their money.

Overview of the Countrywide Money Market

The customers of the Countrywide Bank access the money market through the money market account. The money market account of the countrywide money market offers the following advantages.

The money market account holder can reap the benefits of higher interest rates with higher balance tiers .
The monthly statements of the money market account are sent by mail.
There is limit set on the amount of deposits in the money market accounts.
There is the facility of free start up supply of checks.
The Automated Teller Machine can be used to make any number of withdrawals that should not exceed the maximum daily amount. The customers can also avail other types of withdrawals and transfers 6 times each month amongst which three may be in checks.
The Federal Deposit Insurance Company insures the Deposits.
The interest rate on the money market account is the highest in the nation.
The interest rate that is offered by the countrywide money market varies according to the different ranges of the balance tiers.
The interest rate that is offered by the Countrywide money market is compounded daily.
Online services are made available by the countrywide money market to check the account tiers and the current rates.

Minimum Balance

The minimum balance required to open the money market account with the countrywide Bank is $1000.

Current status of the money market account

The customers with an average daily balance of less than $ 1000 enjoy no interest rate or Annual Percentage Yield (APY). The customers with an average daily balance between $1000 and $49,999 enjoy an interest rate of 4.4% and Annual Percentage Yield of 4.5%.

The customers who have an average daily balance between $50,000 and $99,999 enjoy an interest rate of 5.11% and an Annual Percentage Yield of 5.25%.

The customers who have an average daily balance ranging between $100,000 and $2,499,999 have an interest rate of 5.11% and an Annual Percentage Yield of 5.25%. The individuals with an average daily balance above $2,500,000 enjoy an interest rate of 1.48% and an Annual Percentage Yield of 1.5%

In order to have a snapshot view of the different investments that are required in these funds let us view the following table.

	Initial investments ( non retirement account)	Initial Investment (Class Z)	Initial Investment (Retirement account)	Subsequent investments	Automatic investments
Columbia Cash Reserves	$2500	$2500	$1000	$50	$50
Columbia Government Reserves	$2500	$2500	$1000	$50	$50
Columbia Treasury Reserves	$2500	$2500	$1000	$50	$50
Columbia Tax Exempt Reserves	$2500	$2500	$1000	$50	$50