By Alex Coan | Retail Banking Manager | Norfolk Main Branch
When it comes to growing your savings, there are several options available. One such option is a money market account (MMA).
A money market account is a type of deposit account offered by Midwest Bank that provides a combination of features from both traditional savings accounts and checking accounts. Let’s explore what a money market account is and delve into the numerous benefits it can offer you.
Understanding Money Market Accounts:
A money market account is a financial tool that allows individuals to save their money while earning a higher interest rate compared to regular savings accounts. Similar to a savings account, MMAs are designed to preserve your capital and provide easy access to your funds. However, unlike a traditional savings account, MMAs typically offer higher interest rates and additional perks.
Benefits:
- Competitive Interest Rates: Money market accounts generally offer higher interest rates compared to regular savings accounts. This makes MMAs an attractive option if you are seeking to maximize your savings. The rates are usually tiered, meaning higher balances earn higher rates, incentivizing you to save more.
- Liquidity and Accessibility: Unlike some other types of investments, money market accounts offer a high level of liquidity. Most MMAs allow you to access your funds easily through checks, electronic transfers, or ATM withdrawals. This accessibility provides the flexibility to meet any unexpected expenses or emergencies while still earning interest on your savings.
- Security: Money market accounts are considered relatively safe and secure. They are federally insured, which means your deposits are protected up to certain limits by the Federal Deposit Insurance Corporation (FDIC). The added layer of security provides peace of mind, knowing that your money is protected even in the event of a financial institution’s failure.
- Diversification and Stability: MMAs often invest in low-risk, short-term securities such as Treasury bills, certificates of deposit (CDs), and government bonds. This diversification helps minimize the risk associated with investing in a single asset class. By spreading the investments across different instruments, money market accounts aim to provide stability and protect against market fluctuations.
- No Market Volatility: Unlike investments in stocks or bonds, money market accounts are not subject to market volatility. The interest rates are relatively stable, providing a predictable source of income. This makes MMAs an appealing choice if you’re seeking stability and less exposure to market risks.
- Higher Account Balance Benefits: Many money market accounts offer additional benefits for maintaining higher balances. These perks may include waived fees, premium customer service, and access to premium banking services. Contact Midwest Bank staff today to learn about the benefits that come with our money market accounts.
Money market accounts offer a compelling blend of security, liquidity, and higher interest rates. They provide an excellent option for individuals looking to grow their savings while maintaining flexibility and accessibility. With competitive interest rates and the added benefits of deposit insurance, MMAs serve as an attractive vehicle for those seeking a balance between risk and reward. We can help you set up a money market account as a valuable addition to your financial strategy and help you to achieve your savings goals.
To open a money market account, contact us today!