Money market accounts allow savers to earn a higher interest rate on their money, typically in exchange for maintaining a minimum account balance. Banks and credit unions often have tiered money market rates, meaning the bigger your balance, the higher your interest rate. Plus, bank money market accounts are eligible for federal deposit insurance, just like a regular savings account. Use the filters below to find the best money market account for you!
When it comes to stashing your savings, money market deposit accounts (MMDAs) are an often overlooked option. In many ways, these accounts are an excellent tool to securely store funds all while growing your balance with competitive rates.
Money market accounts inherit many aspects of a basic savings account. They both restrict depositors to accessing the money 6 times or fewer each month. Both are also eligible for federal deposit insurance up to the legal maximum (not so with the similarly named money market fund). However, there are some elements that make MMDAs unique and better suited for certain situations.
Tiered interest rates - Most money market accounts offer different rates based on how much money you have deposited. The higher your balance, the higher you can earn in interest. This means that if you have a significant amount to start with, a money market account may outpace a regular savings account in terms of yield. It’s also a great incentive to save even more to reach those higher rates.
High minimum deposit requirements - along with tiered interest rates, most MMDAs also specify a fairly large minimum deposit requirement to open an account, avoid monthly fees, or even just to earn interest. If you aren’t sure whether or not you can meet this limit, look for banks or credit unions that don’t require it or else investigate a basic savings account.
Check writing capabilities - Unlike a regular savings account, money markets sometimes offer the option to write checks. Keep in mind that using these checks is still subject to the 6 withdrawals per month limit, so you can’t go crazy writing checks without incurring a fee. This feature may be useful for people who are using an MMDA to build up an emergency fund, for example. When the need arises, you could easily tap the funds to cover an unexpected cost with a check.
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