Savings Accounts

A money market account is an option to deposit your extra savings that can give you a higher return for your money than a traditional savings account. How does a money market account work? Money market accounts let you access your money at any time, but they will usually have restrictions on how often you can access your account (for example, up to three times a month). Money market accounts can also require you to keep a certain minimum balance to avoid extra fees. Knowing that customers’ deposits in money market accounts are going to [...]

Why use a money market account instead of a savings account? Think of money market accounts as a happy middle between CDs (certificates of deposit) and savings accounts. While money market accounts will usually put more restrictions on accessing your cash than savings accounts, money market rates and interest rates are actually similar to short term CD (certificate of deposit) rates – without locking up your cash for a long period of time, as CDs do. Money market accounts are perfect for deposits you don’t expect to access frequently but that you want have access to [...]

The following are Money Market advantages that are available to their buyers: Money Markets are highly liquid assets. In other words, you can withdraw cash from them at any time, usually without any sort of interest penalty. There are no locked-in holding terms associated with a Money Market instrument. In contrast, a CD (Certificate of Deposit) requires the buyer to agree on a minimum amount of duration before he can take out the initial cash deposit. CDs also impose interest penalties for early withdrawals. Money Market Instruments are almost always FDIC-insured. That means that they [...]

There are thousands of FDIC insured banks out there, literally, so its best to start with some comparison shopping of money market accounts before you choose one. Internet tools make it easier than ever to compare money market rates across a wide variety of banks. Beyond just looking for high interest rates, there are some other things to keep in mind when shopping for money market accounts: Make sure you can live with the account restrictions,  minimum balance requirement, and money being locked in for a certain period of time. Determine whether the published rate is [...]