A money market account can provide you with a great opportunity to save your money. Unlike a traditional savings account a money market account will come with a higher interest rate. Having a higher interest rate can give you a chance to build up your savings faster and it makes it much easier for you to justify using a money market over a standard savings account.
What Is A Money Market Account?
If you are not sure what a money market account is, allow us to explain! A money market account is similar to a savings account only it has some limitations on it. Typically a money market will ask for a deposit requirement amount and it may also have account maintenance fees. There are usually withdrawal limitations on the account as well (usually 6) and you may need to maintain a certain balance in the account or face a penalty.
What To Look For
As you are looking for a money market account for your savings needs you must be able to consider the following:
- Withdrawal limits
- Required balance
- Account Fees
- Interest Rate
- Account Accessibility
Use a money market account rates comparison tool in order to get a clear picture of the different things that can help you in choosing the right money market account. Always check on the bank and to ensure that it is backed by the FDIC to know that your investment will be save and secured.
What Are Your Goals?
When you are looking around for the best money market account you need to consider what your savings goals are. If you are saving money for just a few months, any type of savings account will work and you may be better off with a high interest savings account instead so you can have easier access to the money. For long-term investments a money market account is a smart option as the money can grow faster with the higher interest rate.
