So, you’ve come into a little extra cash, maybe through inheritance, a signing bonus, or just plain luck. Or you’re just hoping to bolster your savings. Your first reaction is to drop your money into your savings account, right? But have you considered a money market account to really get the most out of your money?
Like a savings account, a money market account is a great option for getting your cash to work for you. But there are a few good reasons to consider a money market account first.
1. Money market accounts typically offer higher interest rates than traditional savings accounts.
2. Got a sudden auto or home repair? You can withdraw money from your money market account to cover an emergency expense. And the APY on a money market account can keep your money growing long enough to cover the cost.
3. While returns and interest might not be as high as IRAs or investment accounts, your money is still federally insured. So, it’s a no-risk savings plan.
Like all things financial, there are a few caveats to money market accounts. First, withdrawals are limited to a few per month, so it’s best to have a specific spending plan for your account. Second, money market accounts can require a minimum balance to earn interest. So, have a plan in place to maximize your interest earnings.
Money market accounts are great places to store savings, but still retain flexibility. If you’re looking for a new way to get your money working for you without locking it up for the long term, consider a money market account. Money market accounts are great ways to save for semi-major expenses like taxes or tuition. And because they accrue interest faster than a conventional savings account, they’re a convenient way to earn extra interest before paying more frequent expenses too.
At Utah First, we’re in the business of helping you make your money grow. We can get you set you up with .75% APY with a $2,000 deposit. Check out our new money market account and rates today.
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