All You Need to Know About Money Market Accounts
Money Market accounts are a kind of savings account with a higher interest rate than traditional savings accounts and increased flexibility. They can be a great option for customers who want to earn more on their savings while having easy access to their money. Here’s what you need to know about Money Market accounts.
How Money Market Accounts Work
Money Market accounts work similarly to traditional savings accounts, but with several key differences. First, Money Market accounts typically require a higher minimum balance to open and maintain. Second, funds in Money Market accounts earn a higher interest rate than traditional savings accounts. Finally, some Money Market accounts offer check-writing privileges, ATM access and checking account transfers; all making it easy for the account holder to withdraw funds when needed.
Security
At FCCB, keeping your money safe is always a top priority. The funds in your Money Market accounts are insured by the FDIC, up to $250,000 per depositor, per institution. This makes them a safe and secure option for storing your savings.
Benefits of Money Market Accounts
If you’re thinking of opening a Money Market account, consider the benefits you’ll enjoy:
- Higher interest rates. Money Market accounts typically offer higher interest rates than traditional savings accounts.
- Easier access to funds. Many Money Market accounts come with check-writing options and ATM access, making it easy to access your funds when you need them.
- Federal insurance. Money Market accounts at FDIC-insured banks protect your deposits up to $250,000 per depositor, per institution.
- Low risk. Money Market accounts are a safe and secure option for storing your savings, as they are not subject to the same risks as other types of investment products.
Ideal uses for Funds in a Money Market Account
Money Market accounts can be a great option for a variety of savings goals, including:
- Emergency funds
- Expected occasional expenses, such as tax payments, insurance premiums or tuition
- Unexpected occasional expenses, such as household repairs
- Vacation expenses
Money Market accounts can be a great option for short-term savings you may need to access in the near future. To learn more about opening a Money Market to amp up your savings, reach out to your FCCB Banker today!
Sources:
https://www.investopedia.com/terms/m/moneymarketaccount.asp
https://www.consumerfinance.gov/ask-cfpb/what-is-a-money-market-account-en-915/
https://www.bankrate.com/banking/mma/what-is-a-money-market-account/