Due to rising interest rates and an impending recession, saving now may be more important than ever. If you’re looking into ways of safeguarding your money while still being able to pay bills or have access to emergency funds, a money market account could be a great option. Money market accounts offer the security of a savings account with the added convenience of a checking account.
If you want a higher interest rate than what a savings account offers but still have the ability to write checks, then a money market account may be right for you. While some banks require minimum balances in order to earn the highest interest rates, many others don’t—particularly those that operate exclusively online.
When comparing Utah money market accounts to other types of savings products, here are some features to keep an eye out for.
Annual percentage yield, APY
Annual percentage yield, or APY, is the interest rate you will earn in your money market account. It is typically higher than what you would get from a traditional savings account, which can be helpful if you are trying to grow your savings over time.
Fees
While no-fee money market accounts do exist, many banks charge monthly service fees for money market accounts. These fees are often minimal, but it’s important to be aware of them and make sure they won’t eat into your savings.
Deposit
While some banks let you deposit cash into your money market account at an ATM, others will only accept electronic transfers from other bank accounts.
Withdrawal limit
By law, banks must disclose their withdrawal limits to customers when they open an account and every time the terms of that account change. With savings or money market accounts, a bank can’t have a monthly limit lesser than six times.
Interest rate tiers
Many money market accounts offer tiered interest rates based on the amount you deposit. This can help you earn more interest if you’re depositing a larger sum of money, but it is important to compare different accounts and make sure you are getting the best rate based on your deposit amount.
Higher interest rates: You’re going to want to look for a bank that offers high-interest rates on their money market accounts. This will ensure that your funds are growing quickly and keeping up with inflation.
Low or no minimum balances: While some banks may require you to maintain a certain balance in order to earn higher interest,
Online banking capabilities
Many money market accounts allow you to manage your account online, which is convenient if you prefer not to visit a physical bank location. This can also be helpful if you plan to transfer funds or make payments through your account frequently.
FDIC insurance
When choosing a money market account, you will want to be sure that the funds in your account are protected by the FDIC. This is an important safety feature that ensures your money is protected in the event of a bank failure.
Debit or ATM card
Money market accounts typically offer two ways to access your money: ATM withdrawals and debit card transactions.
Some banks might charge extra fees to use these cards, so be sure to check with your bank before signing up for an account.
When looking for a money market account, it is important to do your research and compare different products. By considering these features, you can find an account that will help you grow your savings over time while still giving you the flexibility and convenience you need.
