If earning the best rate possible on savings while keeping your money liquid is a priority, a money market account could be a good fit for your needs. The better your APY, the more opportunity your money has to grow over time. Compared to other types of deposit accounts, money market accounts can offer competitive rates. Money market accounts also can be used to fund multiple savings goals for the short and long term.
Having a linked debit or ATM card and being able to write checks also can make things like paying bills, funding large expenses or covering an emergency easier and less stressful. Depositing funds to a money market account or transferring money between linked accounts can be convenient if you have multiple accounts at the same bank. The main benefits of a money market account include: Money market accounts can offer some of the same advantages as savings accounts, checking accounts or even certificates of deposit. Couples who hold joint accounts can each be covered up to that amount. This means up to $250,000 per depositor, per account ownership category, per institution. So long as your money market account is opened at a bank or credit union that’s FDIC insured, your money is protected up to certain limits in the event of a bank failure. The interest rate and annual percentage yield (APY) you can earn on money market deposits also can vary from bank to bank. The bank also can charge monthly maintenance fees, check-writing fees or other fees to maintain a money market account. But unlike a savings account, you may be able to write checks from a money market account or get a debit/ATM card that you can use for making purchases or withdrawals.ĭepending on the bank, you may need to meet a minimum deposit requirement to open a money market account. That’s one feature that makes them similar to savings accounts.
Money market accounts can be interest-bearing, meaning the money that’s deposited can grow over time with interest. Depending on the bank, they may be referred to as MMAs, MMSAs or MMDAs. These accounts also can be called money market savings accounts or money market deposit accounts.
A money market account is a type of deposit account that can be offered by traditional banks, online banks and credit unions.
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