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What is a Money Market Account and How Does it Work?

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Are you tired of settling for ordinary when it comes to your savings? Imagine having a financial option that offers flexibility, security, and growth potential all in one. Enter the world of money market accounts – a smart choice for those seeking to elevate their savings game.

With a money market account, you will have peace of mind knowing your funds are safe. And you’ll still enjoy convenient access whenever life throws a curveball. Whether you're planning for a rainy day or dreaming of your next big adventure, a money market account provides a reliable avenue for achieving your financial goals.

Stay tuned as we break down the basics of money market accounts and how they work, helping you on your journey toward financial success.

What is a Money Market Account?

A money market account is a type of deposit account offered by most banks and credit unions. You can think of a money market account as a blend of the best features found in savings and checking accounts. They are flexible enough for accessing funds when you need them, but they do have some federal transaction limits to keep in mind.

Best of all, money market accounts give you the chance to earn interest at potentially higher rates than traditional savings accounts – minus the nail-biting uncertainty of investment accounts.

How Does a Money Market Account Work?

We’ve mentioned that money market accounts blend the best of savings and checking features into one convenient package. But what does that mean?

When you deposit cash into a money market account, you start earning interest on those funds. You’ll most likely earn a higher interest rate than on a traditional savings account. And the interest rate can even go up depending on how much you have saved. Interest is usually compounded daily and paid out monthly, adding a little extra to your balance each time.

What's neat about money market accounts is that your money isn't locked away like it might be with a certificate of deposit. You can dip into it whenever you need to, without worrying about any withdrawal penalties. Plus, you get some of the perks of a checking account, like a debit card or check-writing privileges.

However, similar to a standard savings account, there's a limit on the number of withdrawals you can make each statement period (usually capped at six). And there may be minimum balance requirements. So, while your money grows steadily, it is also readily available for those times you need it.

Are Money Market Accounts FDIC-Insured?

You can open a money market account at most brick-and-mortar banks, credit unions, or online. However, it's crucial to ensure that the financial institution is FDIC insured. That’s because FDIC insurance covers up to $250,000 per depositor, per account ownership type, meaning your funds are secure regardless of where you open your account.

So, if you're looking for a reliable way to grow your savings with the safety net of federal insurance, a money market account might be just what you need.

Finding the Best Money Market at Academy Bank

Ready to level up your savings game with flexibility and high-interest rates? Enter Premier Money Markets1 from Academy Bank. These accounts give you the freedom to access your cash whenever you need it, while also supercharging your savings as you go.

Plus, take advantage of our exceptional introductory rate of 4.15% Annual Percentage Yield (APY) for the first six months when you open a new Premier Money Market account with a minimum deposit of $10,000.3 It's the perfect opportunity to make your money work harder for you.

What you get with Academy Bank’s Premier Money Market Account:

  • ATM and in-branch withdrawals
  • Eligibility for Savings Cents2
  • Source of overdraft protection
  • Digital Banking with account alerts
  • Option for Homeowners Associations to earn interest
  • Free eStatements or $5 paper statements
  • Up to $100,000 ACH funding possible when opening online4
  • No monthly service charge when you maintain a minimum balance of $1,000 per monthly statement cycle.5

Why settle for ordinary when you can get extraordinary? Get started today with an opening deposit requirement of only $25 and take control of your financial future!


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1 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. Six (6) transactions per statement allowed. Closing your account within 90 days of opening will result in a $20 early closure fee.

2 Choose from $1 to $5 increment to round up on your debit card purchases from your checking account. Each night all the extra change will automatically transfer from your checking to your savings.

3 Annual Percentage Yield (APY) is accurate as of 4/29/2024. 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.

4 A $100,000 limit is in place for ACH transactions when funding a Premier Money Market account. No international transfers.

5 Excessive withdrawal fee of $10 per item over 6 withdrawals per statement cycle not to exceed $60 per statement cycle.