How to Find the Best Money Market Accounts
When you’re saving money, it’s always nice to put away as much as possible so your savings can grow quickly. But often, putting your money in the right kind of account is the true key to increasing your funds. And while traditional savings accounts seem like the best option at first glance, a money market account can be far better. Search online to see what money market accounts are available for you to take advantage of.
Money market accounts are a blend of savings accounts and checking accounts. They typically offer bigger benefits than a basic savings account, like higher interest rates and access to ATM cards. And they allow you to easily access your money. If you’re looking for an account that’ll help you earn more money, you need to search online for money market accounts today.
If you’re trying to find a money market account but aren’t sure where to start, follow these simple steps.
Look for High Interest Money Market Accounts
The first thing you should consider when you’re searching for the best money market account is the interest rate. An account’s interest rate is critical – it determines how much money your savings will make. And over time, a high interest rate helps you save more money.
In order to maximize your earnings, you’ll want to choose the money market account with the highest interest rate. So, you’ll need to compare multiple money market account options from different banks to determine which is the best of the bunch.
Check the interest rate of money market accounts at your current bank. You should also consider and compare money market accounts offered by online banks, local credit unions, and small regional banks. You can also look at national banks, but it’s typically smaller banks that offer the highest rates. And as you compare interest rates, make sure to look at both the APY and how interest compounds. Some banks compound interest daily, while others do not.
Pay Attention to Maximum Earnings
In addition to the interest rate, which determines your money’s earning potential, you should also take a close look at the details of each money market account. Some banks do set limitations on how much you can earn – or even limits on how you’ll earn interest.
Look for the maximum on money market accounts. For some accounts, you’ll find that there may be a limit on how much of your money can actually earn the high interest rate. For example, you might be able to earn 0.9 percent APY only on your first $50,000. Once you reach the maximum, you’ll begin earning less interest.
You should also look out for low balance restrictions. For example, you might be able to earn the maximum interest rate on any high balance – but you may not be able to earn that rate if you have $5,000 or less in your account. The more you’ll deposit, the more you’ll earn; but this is only a benefit if you have a lot of cash available to save.
Check Account Guarantees
Lastly, you’ll want to make sure that you’re going to earn more money if you go through the effort to open a money market account. And the best way to do this is by checking for account guarantees.
Unlike most savings accounts, money market accounts can actually offer guarantees that lock in your interest rate for a length of time. For example, a bank might offer a 12-month rate guarantee to ensure you’ll earn the same high interest rate for at least one year after opening your account. This can save you time and effort – and it ensures that even if rates drop, you’ll be guaranteed to earn a great interest rate for a set period of time.
Strong Money Market Accounts to Consider
Choosing a money market account is the first step towards earning more money and maximizing your savings. But in order to find the best option for your funds, you need to consider different qualities, limitations, and options. And you need to compare money market accounts from different financial institutions.
To make the search for the perfect, high-interest money market account, start your search with these great options.
Sallie Mae Money Market Account
With an interest rate of 0.07 percent, the Sallie Mae Money Market Account is a solid option for earning more on your savings. Interest is compounded daily and paid monthly. There are no minimum balance requirements, and there are no monthly maintenance fees to worry about. You can easily manage your money – you can even write checks – and get up to six withdrawals per month.
First Internet Bank Money Market Savings Account
Your money will earn 0.81 percent interest when you open a First Internet Bank Money Market Savings Account. All you need to do is make an initial deposit of $100 to start earning more money. This money market account comes with an ATM card and unlimited deposits. If you carry a minimum balance of $4,000, you can avoid the $5 monthly fee. You can open an account online in just minutes too.
CIT Bank Money Market Account
The CIT Bank Money Market Account allows you to earn 0.8 percent APY. You’ll enjoy all the benefits of a traditional savings account, with the potential to earn more money. This money market account includes up to six transactions a month, features no monthly maintenance fees, and allows you to easily manage your money with online banking. A $100 minimum deposit is all that’s required to open a new account.
These are only a few of the money market account options you’ll find when you search online. You can check regional banks, local credit unions, and other financial institutions to see what kinds of interest rates and accounts might be a good choice for you.