What is a Money Market Account?
A money market account is designed to help you save, just like a classic savings account or a CD. But unlike a traditional savings account, money market interest rates are typically higher. Plus, that interest is compounding, so you're gaining interest on the interest each period. And unlike a CD, you can often make a certain number of withdrawals each month, or write a set number of checks to draw on the account. Those types of limitations are part of what makes the higher interest rate possible.
RMCU Money Market Accounts
RMCU has a money market account for whatever stage you are in life. With standard and premier options, you're all set to take charge of your savings future. Here's the rundown of what to expect from each account.
Standard
There's nothing standard about RMCU's standard money market account, at least when you compare it to traditional savings. You're looking at an interest rate of 0.30% to 0.45% APY. For a frame of reference, standard savings accounts will typically yield 0.12% to 0.20%, so if you're ready to see your money grow, a money market account is a great idea. With a minimum balance requirement of $2,500, you'll be putting plenty extra in the bank, especially since you have that daily compounding interest to look forward to. With a relatively low minimum balance, the barrier for entry won't pose a problem as you're looking to put more of your money into savings.
The Fine Print:
Minimum Balance Requirement: $2,500
Monthly Fee: $10 if balance drops below $2,500
Interest Rate: 0.30%-0.45% APY
Free Online Banking and eStatements: Yes
Premier
A Premier Money Market account is for those who have a little more to sock away, but still want to have easy cash access. This is a great place to put your money while you're saving up for a down payment on a house or planning a big purchase and don't want to have that money tied up in the stock market or other long-term investments. With a higher minimum balance requirement of $50,000, you're also looking at higher interest rates: around 0.50% to 0.65%. And you still have free online banking and e-statements to make managing your money simple.
The Fine Print:
Minimum Balance Requirement: $50,000
Monthly Fee: $25 if balance drops below $50,000
Interest Rate: 0.50%-0.65% APY
Free Online Banking and eStatements: Yes
When you're ready to amp up your savings, contact RMCU to get going with the money market account that best suits your savings life. For more money advice, check out the rest of the RMCU blog here.
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