What is Money Market Account? Know Its Benefits
When it comes to choosing the higher interest rate paying accounts, people choose money market account over the savings account. It is an interest-bearing account that offers the limited cheque-writing ability to the account holder. Therefore, the best money market accounts provide account holders with advantages of both savings and cheque bearing accounts. You cannot maintain this account with a low balance, therefore, you need a higher amount of balance in this account. These accounts are also insured by FDIC (Federal Deposit Insurance Corporation) which is a plus.
Why should I Get Money Market Account?
You may have understood through the Money Market Account Definition that it is a lot better than the savings account. You receive greater percentage yields per year and it provides facilities beyond the restrictions of the savings account. You can gain access to insured MMDA (Money Market Deposit Accounts) and get liquid security from the banking institutions for your short term investments. However the money market account’s liquidity is less than the cheque account, but it is higher than the bonds. You can easily deposit in the government securities, certificate of deposit and commercial papers and the money market accounts will return a lot higher amount than the savings account.
It offers better availability to funds:
There is no limit posted by the banking institutions over the ATM withdrawals of Money Market Accounts. You can get quicker and better access to your funds. The banks allow account holders to make 6 withdrawals/statement cycles. You can withdraw the amount through cheque, money transfer or debit card payments. The account holders can fully utilize their funds and invest their money in productive works. In addition, FDIC insures the Money Market Accounts, so there is no need to be worried about the funds. Maximum banks offer higher interest rates. You can deposit your funds and get higher returns on your savings.
We suggest corporate people invest their funds safely and gain larger benefits. The Money Market Accounts offer better security and liquidity than savings accounts. Yes, the minimum balance in MMA is higher than several other accounts, but its benefits are also larger. You can find some banks that allow customers to open the account at any balance. You should carefully check all the terms and conditions. If the facilities provided by the banks are right according to the facilities we have mentioned here, you should get that account. Your money will be safe and you will get better access to your funds. And it is the prime reason that many people are choosing Money Market Account today.