Saving money is an important component in the overall management of your personal finances. It is not enough to make money and avoid debt, you must also put money aside to be used in the event of an emergency or financial hardship. Beyond saving for short term goals, the need to save for long term goals such as retirement is also important.
With so many different savings goals, it sometimes becomes confusing as to which type of savings vehicle is best suited to achieve these goals. Here we look at money market accounts and how to find the best rates available.
What are money market accounts?
Money market accounts (MMA) are sometimes referred to as money market deposit accounts (MMDA). Both types of accounts are basically a type of savings account made available through banks and credit unions. Unlike a traditional savings account which generally offers a very low interest rate, MMA’s typically pay a higher interest rate, giving the owner of the account more opportunity for growth. The higher interest rate offered by money market accounts is not without some restrictions to include higher minimum balance requirements and limited withdrawals from the account. While money market accounts are considered a deposit account, checks are permitted to be written from that account but not without restrictions. If the owner of a MMA exceeds the maximum allowable check transactions is the designate time period (3-6 per month), the financial institution that holds the money market account may impose high fees or even close the account. For this reason it is important to note the rules and restrictions on your account before making transactions that may result in penalties or fees.
The best money market rates.
Money market accounts are established to earn higher interest on deposits in a low risk investment. Finding the best money market rates is important to help you achieve your goal of maximum growth while using this type of savings vehicle. The interest paid on money market accounts is typically compounded daily and paid monthly. In order to find the best money market rates, you will have to do a bit of research. Banks often offer higher rates in an effort to attract deposits, while others have tiered interest structures that allow accounts with higher balances to get higher interest rates.
Search Online For Best Money Market Rates
To find the best money market rate available you can turn to the Internet and take advantage of the numerous websites that update and compare the rates from hundreds of different banks and financial institutions. Most of these online resources allow the visitor to review what type of account is available as well at the interest rate and annual percentage yield. In addition, you can compare the minimum balance required as well as other promotions or special features associated with that account. As with any other type of savings or investment account, it is important to compare all the features before making your final decision. Interest rates are important for the growth of your savings, however other factors such as minimum balances, fees, penalties and restrictions also play a big role in the overall value of the money market account and how well it will meet your financial goals.
Best Introductory Rate
Right now there are tons of options for money market rates (although most aren’t paying much do to the low interest rate environment). EverBank has had an attractive introductory offer on their newly opened money market accounts paying 2.25% for the first 90 days. Want to learn more? Check out our review post on EverBank or head straight to their site and open a high yield money market account today.
Ready to start making money? Click here or the Apply Now button to get started today.