Money Market Accounts: Security, Flexibility
Watch Your Savings Grow with Higher Interest Rates
Money rates may change frequently and are subject to the state of the economy. You might not be able to count on a set rate like you would with other types of investment accounts. But you can earn higher interest rates when the market is performing well. With a higher rate on your investments, your savings will grow more quickly.
Flexible Plan Allows You to Withdraw Funds
Spending from a money account is generally much easier than withdrawing from a savings account. However, there is typically a limit to the number of checks you can write or withdrawals you can make in a single period. Though checking accounts have fewer restrictions, money accounts allow you to earn interest on your savings while still giving you access to your funds.
Your Money is Protected from the Market
Whether the market reaches an all-time low or hits peak levels, investments in a money account are always protected. Money rates are still influenced by the state of the economy, so you will have to account for fluctuating rates. Interest levels can change, but the money you've deposited in your account will not be lost, up to the FDIC-Insured amount.
Earn Higher Rates with a Higher Balance
When you open a new money market account, your interest rates are influenced by your initial deposit amount. Investing higher amounts can help you become eligible for better interest rates.