If you’re looking for a “set and forget it” tactic that grows your money, doesn’t need constant attention, and keeps your money accessible, a money market account may work for you.
Money market accounts accrue interest at the rate of a share certificate but with the accessibility of a savings account. You can leave your money alone and watch it grow. In addition, many institutions won’t penalize you for making withdrawals if you need to.
So, What is a Money Market Account?
Money market accounts act like savings accounts, earning interest while you do nothing. They differ from traditional savings accounts by their higher level of interest. Typically, when you unlock higher rate levels, you lock your money away for longer, as with a share certificate. But with a money market account, you can access your funds any time with an in-branch withdrawal or with checks associated with the account.
“They are sometimes called the ‘no-brainer’ of savings accounts because they make sense for so many of us that have savings goals but need to keep our money accessible,” said Dawn Romero, Assistant Vice President of Retail Experience at State Employees Credit Union. “Our Money Market account offers a way to access higher rates of earnings on your balance without sacrificing how often you can use your own money.”
How Much Can a Money Market Account Earn?
Tiered Rates Maximize Your Earnings
Typically, the more you put into a money market account, the more you’ll earn. Rates could start around 0.15% and can reach over 2.0% in most standard money market accounts. But specialized money market accounts could have a higher base rate on specified balances over a certain amount, and can create the potential to go up with relationship bumps.
Who Are Money Market Accounts For?
Anyone that wants to keep their savings liquid while still earning on their balance would want to consider a money market account. Here are some examples of households that would benefit from this type of account:
- A “first” savings account: money market accounts are a great first account for youth entering the world of money management. It offers a safe place to deposit birthday money and lemonade stand earnings while teaching how to make smart money moves. The account can grow with them as they save for college and beyond.
- Specific savings goals: saving for a down payment, honeymoon, college fund, or home improvement project? Earn more money on top of what you’re socking away while keeping it safely out of reach of debit card transactions or ATM withdrawals.
- Retirement and fixed income: a money market account keeps your money safely close for easy remote deposits and unanticipated needs such as roof leaks or medical procedures, but tucked away where it can grow without your attention.
State ECU’s basic Money Market account offers no minimum balance restrictions, no limits on transactions, and high earning potential. There is also an Advantage+ Money Market account with a required minimum balance and our highest rate. When you’re looking for a way to make your money grow without the hassle of management or withdrawal penalty, a Money Market account might fit just right. Contact us anytime with questions by phone, through our website, or at one of our branch locations to discuss if a Money Market account is right for you.