The term “Money Market Savings Accounts” might seem confusing, because it seems money markets and savings accounts are two different types of accounts. In all reality money market accounts and savings accounts have much more in common than you may have previously thought.
Money Market Accounts
A money market account is a type of a savings account. Both money market accounts and savings accounts are set up to help you save money for a rainy day, vacation, a purchase, or for something fun. Both accounts have a limited number of withdrawals you are allowed to make each month, but you can use an ATM/Debit card with a money market account. This provides easier access to your money. Be aware of how many withdrawals you can make each month, because the fees attached to extra withdrawals can get expensive. Banks implemented ATM/Debit cards for money market accounts in hopes their customers would use their debit card more than the allotted amount so they can make money off of withdrawal fees. Some banks, such as Ally Bank, do not have bank fees. The Ally Bank online savings account offers competitive rates and a no fee policy. The restrictions on the number of times you can make a withdrawal can, however, be a good thing. It means you have to keep your money in the money market savings accounts, saving it and not spending it frivolously.
Investing your money can be scary due to the constant ups and downs in the economy. By investing your money in a money market savings account that is FDIC insured you can guarantee your money will be protected. The economy might effect how much interest you can make, but the total you invest will be yours to withdraw and use. The best money market rates are typically the same as the best savings account rates. Money market savings accounts are a good choice to invest your extra money and gain some interest. So what are the best money market accounts? The money market chart can help you find the best interest rates available.
