Many people are looking to save more money using money market accounts which are fast becoming popular in the recent years. Traditionally money market accounts have more interest and are entirely different when compared to savings accounts.
Although you need more money to open a money market account, there are several advantages that you get, and they include the following.
1. Availability of Funds.
With a money market account, you are allowed up to six withdrawals within one statement cycle. Remember that ATM withdrawals are not included in the limit ensuring that your money is not tied up. While other types of accounts restrict your cash, a money market account guarantees your funds are always easily accessible.
2. Interest Rates.
Although the interest rates for money market accounts vary depending on the amount of money you deposit and bank you use, it is always quite high. The money market rates are usually superior and expected to rise in the coming years. Checking accounts are great but will not offer you a steady high-interest rate because they typically focus on long-term interest rates. Money market accounts, on the other hand, are designed to ensure you get more interest in the short-term period.
3. Insurance and Security.
When compared to bond and stock, money market accounts have a considerably lower risk. Most money market accounts are insured by FDIC thereby ensuring you can rest easy knowing your money is well taken care of. The same way regular accounts are protected by the FDIC is the same way your money is protected with a money market account. There are therefore no risks involved, and you are always guaranteed turning a profit.
4. Debit Card Access.
A money market account gives you the opportunity to access funds using a debit card, unlike the regular savings accounts. Most people usually ask why this particular feature is essential and it’s quite simple actually. This option gives you more flexibility should you need money from your account to your debit card for whatever reason.
5. Account Benefits.
Most money market accounts do not require any minimum balance requirements or monthly maintenance fees. You could open and fund your money market account with any amount of money and reap all the benefits that come with it. Most banks also do not charge any fees when you use ATMs nationwide. Should you be charged any ATM withdrawal fees from other banks, then it will automatically be reimbursed to your account.
6. Customer Support.
All banks that offer money market accounts also provide 24/7 customer support to these account holders. You will be able to quickly sort out any issues that you might have and make enquiries from time to time. Customer support is always vital to successful banking, and a money market account will give you that benefit.
Although money market accounts have several benefits, you should do your in-depth research to find the best that suits you. Shop around until you get the best rates and enormous benefits before you sign up for a money market account. Ensure there are no hidden fees and the customer support is both reliable and good.