If you’re interested in getting your money to work for you, then you should think about getting a money market savings account. Maybe you’ve heard about these types of accounts but you’re not sure if it’s right for you.
Today we’re looking a bit deeper into MMAs and we’ll tell you everything you need to know about these financial opportunities.
Money Market Savings Account
The Difference
A savings account, on average, doesn’t have particularly high-interest rates. Compared to a money market account, a savings account is much lower in terms of contributions and minimum balances. Generally speaking, anyone can open a savings account and can afford the minimum balance and deposits.
On the flip side, a money market account is, on average, going to offer much higher interest rates. That’s because an MMA is more like a combination of a checking and savings account. These accounts tend to have much higher minimum balances. Generally speaking, MMAs are for people with higher income levels than average.
Why Open an MMA
There are some upsides to opening a money market account. Notably, these accounts are insured and protected, and you can feel assured when you deposit upwards of thousands of dollars into them. People often prefer to deposit large sums in MMAs because of the higher interest rates they tend to have.
If your bank or credit union offers a high-interest rate on an MMA, consider moving your savings into such an account.
Another reason people like MMAs is because they offer access to your funds in a pinch. You can write up to six checks per months from an MMA, and you can use a debit card for those funds up to six times per month. That makes them ideal for covering larger transactions that occur infrequently.
What to Look For
Generally speaking, when you’re looking for a good MMA, you want to find the one with the best interest rates. If the rates in an MMA are comparable to your savings account, you can safely ignore it. Likewise, if the interest rate is much higher, invest your money there.
On the same track, try to find an MMA that doesn’t have monthly fees. There are plenty of MMAs out there that don’t charge monthly fees and offer great interest rates. As such, there’s no reason for you to pay more just to have your money grow!