How to Use a Money Market Account

Saving money should be simple—and it can be. Whether you are a pro at saving or just starting out, a money market account is a smart way to grow your funds while still keeping them within reach. But what exactly can you do with a money market account? Let’s break it down! This article explains how to make the most of a money market account—from earning interest to meeting your savings goals.

Money Market Account Definition

A money market account is a type of deposit account that blends the benefits of checking and savings accounts. It offers flexibility for managing your money while also helping your savings grow with interest.

In many cases, money market accounts earn higher interest rates than traditional savings accounts. That makes them a great option if you want your money to be easily accessible and still work harder for you.

 To learn more about the basics of money market accounts, check out other articles like:

• What is a Money Market Account and How Does it Work?
• Pros and Cons of Money Market Accounts
• Is a Money Market Account a Checking or Savings Account?

How to Use a Money Market Account

Making the most of your account can put you on the fast track to reaching your savings goals—without locking away your cash. Here are a few simple ways to use your money market account:

1. Deposit Funds

Obviously, adding money to your account is the first step, and there are many ways to achieve this:

• Online Transfers: Set up transfers from your other bank accounts. You can even schedule them to occur automatically, so you don’t forget.
• Direct Deposits: Got a paycheck? Your income can be deposited straight into your money market account, whether it’s the full amount or just a percentage.
• Mobile Banking: You can easily deposit checks from anywhere using your bank’s mobile app.  Just snap a quick photo, and your money is on its way!
• Checks or Cash Deposits: Depending on your financial institution, you may be able to deposit money through nearby branches or ATMs.

2. Earn Interest

Money markets really shine here. These high-yield savings accounts offer tiered interest rates, where higher balances qualify for better rates. This means the more you save, the more interest you earn. To make the most of your savings, search for the best money market account by comparing the highest money market rates available.

PRO TIP: Want to understand how your balance could grow? It’s a good idea to learn how to calculate compound interest on a savings account. We suggest using a Compounding Interest Calculator to make it easier!

3. Access Your Money

One common question we hear: Can you write checks from a money market account? Yes, you can—plus A WHOLE LOT MORE! In fact, one of the biggest advantages of money market accounts is having the flexibility to access your funds. For example, you can use a debit card, make online transfers, write checks, and withdraw cash at a bank or ATM. Just remember, banks may limit your transactions to six (6) per month.

4. Source of Overdraft Protection

Linking your money market to your checking account can save the day (and your wallet) if an overdraft happens. That means if your checking account runs short, your money market can automatically cover the gap—helping you avoid bounced checks, dodge overdraft fees, and gain some peace of mind.

5. Save Money for Specific Goals

Got a vacation, wedding, or another short-term goal in mind? Money markets are a great option for targeted savings. They help grow your funds while keeping them accessible for when it’s time to book that flight or pay that deposit. Plus, seeing your balance grow over time can be incredibly motivating making it that much sweeter when it’s time to enjoy the rewards of your hard work.

PRO TIP: Use a Savings Goal Calculator to see what it will take to reach your financial goals—and how long it will take to get there.

6. Diversify Your Savings

When it comes to investing, a money market account hits that sweet spot between safety and growth. Therefore, they are an excellent tool for diversifying your financial portfolio. Consider pairing your money market account with other options like certificates of deposit (CDs), real estate, stocks, or bonds. That way, you can spread your risk while still maximizing your returns over time!

7. Keep Your Money Safe

Are money market accounts FDIC insured? Yes! When stored at a FDIC-insured bank, your funds are protected up to the standard maximum limit of $250,000. This means your money is protected even if your bank faces trouble.

Money market deposit accounts are also a great place to store your emergency fund, especially during times of economic uncertainty. From surprise expenses to job loss, these accounts offer peace of mind when you need it most. Your savings will stay protected and earn interest—so you are ready for life’s curveballs without missing out on growth.

PRO TIP: Take the guesswork out of saving.  An Emergency Savings Calculator will help you figure out exactly what you need.

8. Bridge Between Accounts

If you frequently move funds between checking and savings, a money market account can serve as a “bridge account” for your idle funds. It’s a convenient spot to hold your extra cash temporarily, giving you easy access while earning competitive rates. That way, your money stays flexible and keeps working while you plan your next financial move.

How to Open a Money Market Account with Academy Bank

Opening a money market account is easy, especially at Academy Bank. We make it easier than brewing your morning coffee!

Here's a step-by-step guide:

1. Visit Our Website: Head to Academy Bank's Premier Money Market Account page to learn more about features, rates, and account details. OR visit one of our local banking branches if you prefer a personal touch.

2. Gather Your Info: Keep your identification documents, Social Security Number, and funding method handy when opening your account.

4. Fund Your Account: Make your initial deposit through online transfer, direct deposits, or other accepted methods.
5. Watch Your Savings Grow: Start enjoying competitive money market interest rates and flexible banking options immediately.

Money markets offer a winning combination of growth potential, flexibility, and security. Whether you are building an emergency fund, saving for a goal, or just want to earn more on your savings, these accounts are built for success.

Why wait? Open your money market account with Academy Bank and start making your money work for you.

Premier Money Market Rates