Money Market Accounts

A money market account gives you a safe place to store a larger amount of money and earn more interest compared to a regular savings account. It’s also useful if you want a blend of savings and checking features, such as check-writing capabilities and debit card access, with the caveat of limited transactions. The choice comes down to your personal financial goals and liquidity needs.

Like a savings account, a money market account lets you store money and access it as needed. Unlike a regular savings account, our money market account pays dividends, up to 0.500% with an additional 1.00% APY when you meet the minimum balance to qualify.²

The amount of money you need to keep in your money market account depends on the terms and conditions of the account and your savings goals. Our money market account requires a minimum balance of $2,500 and has no maximum.

There is generally no set limit on how long money can stay in a money market account. You can keep funds in a money market account indefinitely, as long as the account remains in good standing according to the terms and conditions of your financial institution. However, it’s essential to ensure that the account’s returns align with your long-term financial goals.

Money market accounts are as safe as other deposit accounts. A money market account is insured by the FDIC or NCUA up to $250,000.

One disadvantage of a money market account is that it may have limited withdrawal capabilities, often restricting users to a certain number of transactions per month due to federal regulations. Additionally, although they offer higher interest rates or dividends than traditional savings accounts, they generally provide lower returns compared to other investment options, such as stocks or mutual funds.

Yes, money does grow in a money market account. These accounts pay interest or dividends on your balance, typically at a higher rate than traditional savings accounts. However, the growth is generally lower than what might be expected from riskier investments like stocks or bonds.

A money market fund is a type of mutual fund that channels investments into high-quality, short-term debt instruments like Treasury bills and commercial paper. While a money market fund aims to maintain a stable value, there’s a possibility of losing money. On the other hand, a money market account is a type of savings account offered by banks and credit unions that typically pays higher interest than a regular savings account and often comes with check-writing and debit card privileges. Money market accounts are insured by the FDIC or NCUA, making them a safer choice.