What Is This Money Market Thing People Talk About?
With so many different bank accounts available, it’s hard to know which one is best for your particular needs. Here, we’re going to discuss money market accounts and whether they might be a good fit for you.
Let’s start at the beginning. A money market is essentially a savings account with a couple extra perks. It will typically pay a higher interest rate than the average savings account, and you have the ability to write checks from it. So, not only is your money earning more interest, but it’s more easily accessible as well. A money market will generally require a higher minimum balance than your average savings account, so if you don’t have at least a couple grand to put away, this might not be the best savings plan for you.
When you compare a money market to a Certificate of Deposit (CD), you can expect to earn less interest than a CD, but again, your money market will offer you more liquidity.
Typically, money market accounts work best for customers that carry larger balances that need to remain liquid. Each customer is different, and everyone has their own needs, so meeting with your banker to understand your need for liquidity vs. your desire for higher returns is important in order to make the right decision for your money.