With so many different types of bank accounts out there, it’s not always easy to understand the benefits of each and the differences between them. How do you choose between savings accounts, checking accounts, bonds, certificates of deposit, money market accounts and others? It’s no surprise that sometimes it’s just easier to continue with the simple account types you already know, even though alternative accounts may provide more and better meet your needs.
Keep reading to learn more about money market accounts and their benefits so you can determine if our Premier Money Market Account could be right for you.
A money market account is similar to a savings account, but it has one big advantage over a standard savings account: you can often earn more interest thanks to higher interest rates.
Most of us are aware that traditional savings accounts have recently yielded very poor interest rates. So if your goal is to grow your money while saving at the same time, some types of savings or checking accounts may not help you do anything more than keep your current money safe. In other words, you're unlikely to receive any real interest on the funds in that account.
Money market accounts, on the other hand, are a low-risk option to increase your money while keeping it completely protected.
Here’s how money market accounts compare to traditional savings accounts: According to the FDIC, the average interest rate for a traditional savings account is currently 0.39% as of April 2023. An Academy Bank Premier Money Market Account, on the other hand, currently offers a 3.56% APY for 6 months as of April 2023.*
This means you’ll make more than 3% more on your savings in our money market account than you would in an average savings account.
Another reason a money market account can be a good choice is the flexibility it offers. If you're not familiar with money market accounts, you can think of them as a hybrid of an ordinary savings account and a checking account. Money market accounts may be the perfect option for some people, since they offer the "best of both worlds."
Most money market accounts allow customers to transfer money between accounts, make withdrawals, write checks, and more. With all of these benefits, money market accounts may be the right account type for those who wish to grow their savings while still having access to their funds when needed.
And whether you want to bank online or in person, you can manage your money market account in whichever way works best for you.
The ability to make ATM withdrawals as needed is a major advantage of money market accounts. While some types of accounts, including some money market accounts, have monthly withdrawal limits, Academy Bank Premier Money Market Accounts do not.
This means you can make as many ATM withdrawals -- or in-branch withdrawals -- as you want. And you have complete control over your funds.
If you open your money market account with an FDIC-insured financial institution, your account is free from risk that could cause you to lose your money. And this means your money stays safe.
The FDIC, or Federal Deposit Insurance Corporation, provides insurance for deposits up to $250,000. This means that, as long as you have less than $250,000 in the money market account, you’d be reimbursed if anything were to happen to your money.
Although the interest rate with a money market account is higher than that of other types of savings accounts, it may not be as high as you would like. However, this is the cost of keeping your money safe.
While alternative investing options, such as the stock market, may provide higher rates of return, your money is not guaranteed to be safe like it would be in a money market account.
Power up your savings with an exceptional introductory rate for six months with a minimum new deposit of $10,000. Enjoy easy access to your cash when you need it at great rates. Now that's peace of mind while earning extra cash.
Academy Bank's Money Market Account is designed to encourage savings by offering a competitive interest rate. While the more you save, the more you earn, we understand emergencies come up and that you need access to your savings. That's why we offer convenient withdrawals at our branches and ATMs without associated fees.
You also need to know:
At Academy Bank, we want to be your go-to bank for all your financial needs. And we are proud to offer our Premier Money Market Accounts with competitive interest rates, as well as other savings accounts and checking accounts, and more.
*Annual Percentage Yield (APY) is accurate as of 04/27/23. Promotional rate is effective for 6 months from the opening date of a new Premier Money Market account. To receive the introductory rate, account must be opened with a minimum of $10,000 or for existing Money Market accounts, a minimum additional deposit of $10,000 is required that cannot be transferred from an existing account. Maximum deposit eligible for promotional rate is $3,000,000. The rate may change after the account is opened. Fees charged to the account could reduce the earnings on the account. If the account is closed prior to the interest payment date, no interest will be paid.
APYs are effective as of 4/27/2023. APY Balances - $0.01-$9,999 APY = 1.26%. Balances $10,000-$24,999 APY = 1.36%. Balances $25,000-$49,999 APY = 1.51%. Balances $50,000-$99,999 APY = 1.61%. Balances $100,000-$249,999 APY = 1.76%. Balances $250,000+ APY = 2.07%.
The interest rate and annual percentage yield is subject to change daily. Interest begins to accrue no later than the business day we receive credit for the deposit of non-cash items (for example, checks). Interest will be compounded monthly and will be credited to the account monthly. If you use mobile banking to access your account, message and data rates charged by your mobile carrier may apply.
**. A $100,000 limit is in place for ACH transactions when funding a Premier Money Market account. No international transfers.
A monthly service charge of $10 will be imposed every month or statement period if the balance in the account falls below $1,000 on any day of the month or statement period.
Excessive withdrawal fee of $10 per item over 6 withdrawals per statement cycle.
FDIC-insured up to the maximum allowed by law