Oct 03, 2018 / Money Tips
Life is all about compromise. A concession here and a settlement there; you meet in the middle and move forward with a decision. You might not get everything you want, but you’re happy with the end result because that’s how life works, right? The ability to compromise is a strength, and it’s a good strategy for getting along with people. But what if you didn’t have to do it with your savings? What if you could get the best of everything from your bank account, with little to no compromise involved? If you’re looking to get more from your savings, here are a few reasons why a money market account makes sense.
Money market accounts typically offer higher interest rates than most traditional savings accounts. Usually, interest rates on money market accounts fall somewhere in between a certificate of deposit (CD) and a regular savings account. And with many money market accounts, the more money you deposit, the higher your interest rate will be.
Like a traditional savings account (and unlike many other high yield savings options), a money market account gives you easy access to your funds. Most accounts will let you make unlimited deposits, but limit withdrawals to a certain number (usually six) per month.
Money market accounts are a safe place to put savings because your deposits are federally insured up to a certain amount. That makes a money market account a no-risk savings plan, providing a great alternative to riskier investment options, especially if you value ease of access.
If you’re looking to save for infrequent expenses, like tuition, taxes, or emergency expenses, the advantages of a money market account are undeniable. You already plan to make those payments a few times a year anyway, so why not save up for them while earning higher interest in the process?
Life may be about compromise, but that doesn’t mean you can’t get the best of everything when it comes to your savings account. If you’re looking to get more out of your savings, consider opening a money market account and start reaping the rewards of a better interest rate.