As an adult, you are probably familiar with the way checking and savings accounts work. You need them for daily banking. However, you might also need financial products that can deliver more and help you grow your savings while offering ease of access to the funds. For that, you might want to look into money market accounts and see how they can benefit your financial strategy.
When weighing the benefits of money market accounts, think of it as a kind of savings account that can potentially out-earn the interest that traditional savings accounts offer. Money market accounts and regular savings accounts may have a lot of similarities, but their differences are significant too. For one, the amount that you need initially to open a money market account is typically higher than a typical savings account.
If you are interested, do read on as Good Neighbors Credit Union shares some of the benefits of money market accounts that you should not miss out on:
It May Be Secured and Insured
Compared to other investment vehicles like stocks and bonds, the funds you have in a money market account are at a much lower risk. If you open one with an FDIC-insured institution, you have the peace of mind knowing that should the institution fail, you’ll get protection from FDIC insurance to the maximum that is allowed by law. In short, it’s an extremely safe way to get higher returns on your funds.
It Comes with the Usual Account Benefits
If you are worried that the usual perks that you enjoy with your savings or checking account will be lost if you choose a money market account, you shouldn’t. All of those, including the ATMs, online banking, debit cards, and access via checks, are all available with market accounts.
It Is Easy to Access
There is no maturity date with a market account, and one of its benefits is its liquidity. This is especially helpful if you want to have an account that earns interest while still being available for emergencies or unexpected splurges. So, if your car suddenly breaks down while you’re traveling, you can simply write a check or do an online transfer or even withdraw from the ATM! The accessibility may vary depending on the financial institution, though. So, make sure that you know your limits.
It Can Return More Interest Than Checking Accounts
One of the most desirable advantages of a money market account is that it allows you to earn more interest than what you can get with a checking account. While most yields at present are not that big, it is anticipated that they will grow due to the fact that the Federal Reserve is also expected to continuously raise interest rates.
As you can see, there are indeed benefits that you can get from opening a money market account that you won’t get from a savings or checking account. That said, it’s advisable that you shop around to see which institution offers the best rates so you can make the most of this type of account. Doing your homework can make a huge difference, especially if you hope to reap much better rewards and get the most of a money market account. When you conduct your search, do look for institutions that also offer excellent customer service and be mindful of any hidden fees, too.
Good Neighbors Credit Union offers financial solutions, from credit and savings accounts to loans and others. Contact us today to find out more about our services!