Maximizing Your Savings: The Benefits of Money Market Accounts

There are many options for keeping your money safe and earning a little extra from interest. A money market account is an interest-earning deposit account that combines some of the features of both savings and checking accounts.

Here's all you need to know about money market accounts to see how they could fit within your savings portfolio.

High Dividend Rates

Money markets offer a rate of return that surpasses your typical savings account. A money market account can be the perfect way to give your short-term savings their best chance at growth while still having access to your funds. 

Increased Flexibility 

Money market accounts are not intended to cover everyday expenses. However, they do offer increased flexibility over savings accounts. Depending on your financial institution, the funds in your money market account may be accessible via paper check, debit card, or both. Most banks and credit unions also allow transfers from money market accounts to checking accounts. 

It's important to note that most financial institutions do place limits on the number of money market transactions you can make during a given month. 

Minimum Balance Requirements

You'll also want to consider that most financial institutions require a minimum initial deposit to open money market accounts and a minimum balance to be kept in the account at all times.           

Uses for Money Market Accounts 

Money market accounts fill that sweet spot for funds that members want to keep accessible while having the best chance at growth. They can be ideal for expected occasional expenses or emergencies that can easily send a lesser-prepared individual into debt. 

Here are some of the most popular uses for funds kept in money market accounts: 

• Tuition payments
• Emergency household repairs
• Unexpected medical fees 
• Purchasing a new car
• Annual vacation

When You Shouldn't Use a Money Market Account

If any of the following apply to your situation, you may want to look into other banking solutions:

• A checking account will be a better fit if you need an account that is good for everyday use, like paying bills. Transaction limits can make Money Market accounts better for savings. 
• If you're looking for certainty that your money will continually earn a higher rate, certificates might be a better option if you don't need access to the funds for a set period of time. 
• Some money market accounts require significant balances to earn the highest APYs, so a high-yield checking account with a lower balance requirement might be a better fit. 

In conclusion, money market accounts offer a great opportunity for individuals to keep their money safe while earning a higher rate of return compared to traditional savings accounts. With increased flexibility and the potential for growth, money market accounts are ideal for short-term savings goals and unexpected expenses. Ultimately, money market accounts can be a valuable addition to your savings portfolio, providing a balance between accessibility and growth potential.

To see Azura Credit Union's Money Market rates and open account visit AzuraCU.com/MoneyMarket.