67_3-benefits-of-a-money-market-account

3 Benefits of a Money Market Account

A savings account should offer three key benefits: security, accessibility, and a good interest rate. But not all savings plans check all three boxes. For example, you could put money under your mattress where it’s readily accessible, but not exactly secure. And it’s certainly not earning any interest. Or, you could put your money in a traditional savings account where you’ll get increased security without sacrificing much convenience. But your interest rate won’t improve a lot either. A money market account, on the other hand, offers an intriguing balance between each of the three savings benefits. You get security and accessibility with the best money market rates you can find.

Security

As far as security is concerned, a money market account is similar to a normal checking account. That means your deposits will be federally insured up to an amount specified by the terms of your account. So, it’s a no risk savings option just like a traditional savings account with a credit union or bank.

Accessibility

The tradeoff with some high-interest savings and investment options is that you can’t withdraw your money without penalties. But with a money market account, you have easy access to your funds. Most accounts will let you make unlimited deposits and limit withdrawals to a certain number (usually six) per month.

Interest Rate

One of the best reasons to open a money market account is to get a higher interest rate on your deposits. Interest rates on money market accounts usually fall somewhere in between a traditional savings account and a certificate of deposit (CD). Again, a money market account hits the sweet spot, giving you better interest rate than a savings account with more flexibility than a CD.

If you’re looking to get a little of every benefit (security, accessibility, and interest rate) from your savings plan, consider opening a money market account. It’s a great way to save for large, infrequent purchases. And it might just be the smartest, most balanced way to save your money.

News & Events
Jul 01, 2019 / Money Tips

When it comes to finding the right credit card, it can be hard to cut through the constant noise of offers promising more—more credit card rewards, more available credit, and more ways to pay. And while it’s important to find a credit card that fits your needs, sometimes less is more,...

Jun 11, 2019 / Home Equity

If you’re in the market for a home with a mortgage over the traditional home loan limit of $484,350, you may also be in the market for a jumbo loan. Other than sounding somewhat intimidating, a jumbo loan is different from a traditional home mortgage in several key ways. Here’s...

Jun 03, 2019 / Credit

Have you ever found yourself wishing you could bring back the good old days? Regardless of age, everyone goes through times when they wish life was as simple as it used to be. And if you have a variable interest rate credit card with fees that overshadow so-called rewards, you might be...

Corporate
200 E South Temple
Salt Lake City, Utah 84111
800-234-0729
Monday - Friday: 9:00 am - 5:30 pm
View In Google Maps
Routing & Transit Number: 324079500
NMLS # 446035

Utah First Federal Credit Union is federally insured
by the National Credit Union Administration.