Imagine you are looking to open a new bank account. You want to have access to your money at any time in case of emergencies or unforeseen expenses, but you also want a high interest rate to capitalize on your deposited funds. What do you do?
A checking account would allow you to have access to your money at any time but may not provide you with your desired interest rate. Meanwhile, a CD could help you earn more interest, but would tie your money up in the account, and may require fees to access your funds in times of need.
Luckily for you, there is a middle ground which could be the answer to your bank account conundrum.
The Best of Both Worlds
Flexibility plus savings, these are the hallmarks of a money market account. Account holders can earn interest, while also garnering many of the same benefits as a traditional checking account. In fact, a money market account can be set up via your local bank in just a few simple steps.
Money market account holders can write checks, make debit card payments, and withdrawals from their account, based on federal transaction limitations . This makes a money market account a perfect mix between a checking and savings account. It also comes with standard insurance from the Federal Deposit Insurance Corporation (FDIC) up to $250,000, giving you protection and peace of mind.
Things to Remember
Compared to their savings account counterparts, money market accounts can require a higher minimum balance to open an account and earn interest.
Interest rates on money market accounts can be very beneficial but are usually dependent on your account balance. Typically, higher balances are rewarded with higher interest rates, making it more advantageous to maintain high balances in your account.
Keep it in Mind
Whether you are currently looking to open a new account, or you are simply exploring your options for the future, keep in mind a money market and how it could play a role in your financial planning. A money market account sits right in the middle of flexibility and savings. This makes it a great option when exploring new savings methods.
If you have more questions on if a money market account might be right for you, or to set up an account, contact your local Ameris Bank representative today.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.