Earn more with a money market accountA money market account from Mountain America is an easy way to grow your savings while maintaining accessibility to funds. Think of it as the best parts of a savings account and a certificate combined into one amazing account. Show
What is a money market account?A money market is a savings account that usually earns higher dividends than a traditional savings account. In this way, it’s similar to a certificate. However, the funds aren’t locked down for a set period of time, so you can access them as needed. What are the benefits of a money market?
Money market account details
Get your money market account todayIf you’re looking for a savings account with competitive rates and flexible withdrawal options, open your money market account online, at your nearest branch or over the phone at 1-800-748-4302. Open an account Find out how much you could earn when you open an account. Conveniently access your money market accounts anytime, anywhere. Quickly manage your finances using a smartphone or tablet. April 13, 2022 |5 min read April 13, 2022 |5 min read When it comes to your savings, you want to know everything about where you’re putting your money and if you’re getting the most from it. If you’ve heard of a money market account but don’t really know what it is, you’re not alone. Here are the answers to the most frequently asked questions about money market accounts, sometimes referred to as MMAs. So what exactly is a money market account?Despite its name, a money market account has nothing to do with the stock market. A money market account is a unique savings account that generally earns you a higher savings rate than traditional savings accounts.1 It may offer some check-writing and debit card options.2 Also, with the higher savings return benefits of a money market account, there may be certain restrictions. Often, money market account savings can require a higher minimum balance than traditional savings accounts.1 What’s the difference between money market accounts, savings accounts and CDs?While a money market savings account is a type of savings account, it's different from typical savings accounts. Overall, the greatest difference between a money market account and a savings account is the annual percentage yield (APY). The APY reflects how much your account will earn each year.3 It’s based on your interest rate and how often it’s compounded. While searching for what a money market savings account is, you may have come across another type of savings account called a certificate of deposit, or a CD. This is a type of savings account that requires you to deposit money for a specific amount of time, called a term.4 Typically, the longer the term, the higher the APY.5 A big difference between a CD and a money market account is that with a CD, you have to keep your money within the account for the term. (If you take it out early, you might have to pay a penalty.) Once the term is over, most CDs allow you to access your money, plus any interest earned. With a money market account, you can usually access your money without having to face penalties. How does a money market account compare to a high-yield savings account?When you’re considering a money market account vs. a high-yield savings account, you’ll find them to be very similar at first glance. Both might require a higher minimum deposit, both might offer comparable interest rates and both might have similar restrictions on the number of withdrawals or transfers you’re allowed to make each month. One difference between the accounts is access. They can both be used to support savings goals. But remember, money market accounts may give you the ability to write checks and use a debit card. How does a money market account work?If you're looking into opening a money market account, how it works might be of interest to you. For customers, a money market account works similar to a savings account: You deposit your savings into the account, you start earning interest and your money is available when you want it. How often do money market accounts pay interest? While it depends on your bank and your specific account, interest on money market accounts is usually credited monthly.6 So why the higher savings rate than traditional savings accounts? What’s the catch? Generally, the bank is giving you extra interest for keeping extra money in your account. The bank rewards you with the higher APY incentive if you meet certain requirements.7 How safe are money market accounts?When it comes to your savings, you want to know your money is safe. At insured banks and institutions, it is. If your bank fails, your money is secure because the Federal Deposit Insurance Corporation (FDIC) promises to insure your money up to the allowable limits.8 Benefits and disadvantages of a money market accountIf you’re thinking of opening a money market account, hold onto this list so you can have the pros and cons handy. It’s important to know the benefits and advantages of a money market account, as well as any disadvantages. Pros
Cons
How do I choose the best money market account?Many banks and many credit unions offer money market accounts, but they’re not all the same. The first thing to consider is the savings rate. As you’ve seen, a higher savings rate can earn you more money. However, you should also consider any promotions a bank may offer. Some banks may offer bonuses when you open a new account. Next, you’ll want to find out if there are fees—and how these fees might affect your savings. Some accounts are free as long as you maintain the minimum balance, but it’s always a good idea to check the fine print. Finally, you should understand how much you can afford to save. You want to ensure you have enough money available for your day-to-day spending. When you research the minimum balance requirements and transaction restrictions, you want to know you can comfortably afford to meet the conditions on a regular basis. Should I open a money market account?As you consider whether or not a money market account is right for you, it helps to keep in mind these things:
Either way, there are advantages of money market accounts as well as savings accounts, so the right one for you completely depends on your situation. And as you consider your circumstances and available options, keep in mind that your money management skills are growing as well as your savings. This site is for educational purposes. The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the availability or suitability of any Capital One product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional.
April 13, 2022 |5 min read Related Contentarticle | September 28, 2022 | 5 min read article | April 6, 2022 | 5 min read article | April 6, 2022 | 5 min read What are the rules for a money market account?Money market accounts allow you relatively easy access to your money with a few limitations. The Federal Reserve Board specifies that customers are allowed no more than six withdrawals per month from money market accounts. ATM and teller withdrawals don't count towards this limit.
How much do I need to open a money market account?Look at Minimum Deposit and Minimum Balance Requirements
Most money market accounts can be opened for between $500 and $2,500 initially, and many will require the same amount for a minimum balance or you will pay penalties or maintenance fees.
Do you have to add to a money market account regularly?And you can add money to the account whenever you like, unlike with certificates of deposit (CDs.) The number of checks you can write and the number of transactions allowed per statement cycle are limited, but access is still more flexible than what you get .
How much can you make in a money market account?Some of the top money market accounts earn up to 0.60 APY, according to Bankrate, while some three-year CDs pay up to 1.10 percent. Money market accounts with higher yields typically require you to maintain a higher balance.
|