If you have an interest in saving money, a Money Market Account may be just what you need! This is a special type of savings account that allows you to earn a higher level of interest than that which is offered with a basic or traditional savings account; however, the minimum balance that is required on this type of account is typically much higher than is required on a basic savings account.
Minimum balances are commonly in the range from as little as $500.00 to as high as $50,000.00. When money is deposited into this type of account, interest is earned. This is the financial institution’s way of thanking the account owner for the use of the money to make investments and/or loans. Interest is usually compounded on a daily or a monthly basis. It is then paid either monthly or quarterly.
All Money Market Accounts typically have withdrawal limitations and transfer limitations. In this brief guide, you will learn the top benefits associated with owning a Money Market Account.
Benefit #1: The Account is Insured by the FDIC
One of the best advantages to owning a Money Market Account is that it is insured by the Federal Deposit Insurance Corporation (FDIC). All of the deposits and all of the interest that has accrued in the account – up to the maximums that are allowed by the law – is 100% protected by the FDIC.
Benefit #2: The Account has Higher Rates of Interest
As mentioned previously, a Money Market Account pays a higher degree of interest than other types of accounts. In order for this interest rate to be paid, the minimum balance must be maintained. If the minimum balance is maintained, the interest rate of the account is then tiered. It is compounded and completely credited monthly. This means that the account will accrue a higher level of profit as the account balance grows.
Benefit #3: Fund Availability
The next benefit associated with a Money Market Account is that you have access to your money at all times. In most instances, you will be able to make up to six individual withdrawals with each cycle of your statement. These may be made in a large number of forms. These include transfer, through checks, and transactions that directly involve your debt card; however, you should know that withdrawals from an ATM are not commonly included when it comes to account limitations and fund availability.
If you are ready to take control of your financial future, you should consider opening a Money Market Account. As you can see from the information in this brief guide, there are many advantages. This type of account is insured by the FDIC, it allows you to earn a higher interest rate than standard savings accounts, and you have access to your funds.
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