What is a money market account?
You’re saving money and earning interest but think it’s not enough. Consider a money market account over a traditional savings account.
What is a money market account?
Money market accounts are a special type of account insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor*. A minimum deposit may be required to open a money market account, and offer check writing capabilities.
A money market account differs from a money market mutual fund. Investment companies offer money market funds that aren’t insured by the FDIC.
Benefits and disadvantages of a money market account
Is a money market account a good investment? Consider the benefits and disadvantages:
Pros
- Better interest rates than some traditional savings accounts.
- FDIC-insured.
- Allow access to your money via debit card or checks.
Cons
- May require high minimum balances to open an account or avoid fees.
- May limit how many times you can access your account each month.
Should I open a money market account?
If you’re considering whether a money market account is right for you, think about this:
- If you have a rainy-day fund, a money market account can earn you interest on the money you’ve saved.
- If you make frequent withdrawals, a checking account may be a better option.
- If you don’t have the minimum balance, a traditional savings account may fit your lifestyle.
- If you need to access your savings, a money market account may be better than locking your money into a certificate of deposit. You can still earn interest.
- If you have a minimum balance in another savings or checking account, you may consider moving it over to a money market account to take advantage of higher interest rates.
Interested in opening a money market?
Adirondack Bank offers three types of money market accounts: Loyalty, Business, and Municipal. Our Loyalty Money Market and Business Money Market accounts have special money market checks available for easy account access, tiered interest rate, and a minimum balance requirement of $2,500. You must maintain at least $2,500 in the account to avoid a monthly service fee. Our Municipal Money Market account are designed to be flexible and provide the best value for municipalities, school districts, and other government agencies. A minimum balance of $2,500 is required to open an account.
*See FDIC rules for complete guidelines.
The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.
