Why Do I Need a Money Market Account?

Ever feel like your savings account is just… sitting there? You might be missing a better way to grow your money. One account that often flies under the radar is the money market account. But is it right for you? Let’s take a closer look at money market accounts and find out if they are worth opening.

What are Money Market Accounts?

Let’s start with the basics. A money market account is the Swiss Army knife of bank accounts. It’s a hybrid between checking and traditional savings accounts, combining the best features of each with special perks. Specifically, you earn interest while having easier access to your money. This makes money markets a great option for people who want their savings to grow without locking their funds away.

How do money market accounts earn interest? They have a tiered system—basically, the more you deposit, the higher your money market rate. These rates are typically measured in APY, which stands for Annual Percentage Yield.

Common money market account features:

• Flexibility with debit card and check-writing options
• High interest rates
• FDIC insurance protection
• Monthly withdrawal limits (typically 6 transactions)

Who Should Open a Money Market Account?

A money market deposit account is a smart choice for people looking for a reliable way to manage their money. Specifically, it may be a good option if…

• You want higher returns with minimal risk: Earn better rates than other savings accounts while keeping your money secure.
• You need a dependable emergency fund: Your money is accessible for unexpected expenses while still earning interest.
• You are saving for the near future: Money markets are a great choice when you plan to use your funds within a few years.
• You want to add a new bank account: A money market account pairs well with a checking account, offering benefits that round out your banking strategy, including overdraft protection.

Top Reasons to Open a Money Market Account

Why should you get a money market account? Many people prefer these deposit accounts for a wide range of purposes, including:

• Larger balances: Higher account balances = higher returns.
• Competitive interest rates: Money markets often pay 10 to 20X more than traditional savings accounts.
• Account security: This savings and investment option comes with coverage up to the FDIC insurance limit of $250,000 per bank, per account.
• Convenience: Write checks, swipe your debit card, and manage your money market account online.
• Liquidity: Instant access to your money for emergencies or other curveballs.
• Savings diversification: Use this account alongside other investment methods to balance greater returns and risk reduction.
• Short-term savings goals: These accounts are perfect for saving without tying up your money.
• Organized finances: Separate your cash for specific goals, tax payments, or bridge financing.

Questions to Ask Before Opening a Money Market Account

As you are getting started, it’s important to ask the right questions:

What is the minimum balance requirement?

Money market accounts typically require larger minimum balances than savings accounts. Make sure you can comfortably meet this requirement!

Are there monthly fees or penalties?

Monthly maintenance fees, excess transaction fees, and minimum balance fees are fairly common, but they shouldn’t take you by surprise! Always read the fine print and calculate whether the money market interest rate outweighs the fees.

What is the APY on the money market account?

The promotional rate is just the starting point. Learn what the ongoing APY (Annual Percentage Yield) will be after the introductory period ends. Remember to compare options across multiple institutions to see who has the best money market rates

Can I easily access my money market funds?

Can you use ATMs? Does the bank offer check-writing privileges with your account? Your management options should align with how you plan to use the account.

Is a Money Market Account the Best Option for You?

Choosing a money market account is all about balance—between earning, saving, and spending. Here’s what you need to know:

Get a money market account if…

• You have more than $1,000 that you don’t need for daily expenses
• You want higher interest without investment risk
• You need occasional access to funds
• You are building an emergency fund or saving for a specific goal

Look elsewhere if…

• You can’t meet minimum balance requirements
• You would rather invest in riskier options for better returns
• You need to withdraw your money frequently (more than 6 transactions monthly)

Finding the Best Money Market Accounts at Academy Bank

So, have you been asking yourself, “Sounds great…but where to I find a money market account?” Luckily, Academy Bank makes it simple! You can open your account online or in-person—whichever works best for you. (Find Banks Near Me)

Why choose the Premier Money Market Account from our bank?

• Premier money market rates
• FDIC insurance
• Overdraft protection when connected to a checking account
• Convenient access to a large ATM network, plus check-writing and debit card privileges
• Easy online and mobile banking* applications

Ready to let your money work harder? Open an Academy Bank money market account today and learn the difference between basic banking and personalized banking!

MONEY MARKETS

Learn more about money markets:
Pros and Cons of Money Market Accounts
How to Use a Money Market Account
Are Money Market Accounts FDIC Insured?
Is a Money Market Account a Checking or Savings Account?
Can Your Write Checks with a Money Market Account?