3 Reasons Why A Money Market Account Should Be Part Of Your Savings Strategy
Strong rates make January the perfect time to get started.
You’ve gained a lot of savings and investment savvy during your lifetime, and you’ve planned well for your future. But there are still everyday expenses to take care of, and that’s especially true if you have kids at home. A money market account can be one tool in your personal finance toolbox to help you meet the big expenses at this life stage, like vacations, home renovations, and that unexpected boost in college costs.
Not to be confused with a money market fund, a money market account is a type of bank savings account. You can think of it as an interest-bearing savings account offering the same safety and security as a traditional brick-and-mortar bank.
Here’s why you’ll want to make opening a money market account one of the first things you do in the new year.
Money market accounts work for you.
Rates vary from bank to bank, but money market accounts typically offer interest rates above those set by the Federal Reserve and higher than a traditional savings account. That means you can grow your funds for short-term needs and long-term goals – or have a financial safety net with competitive rates. Plus, there’s no guesswork involved.
While money market funds and other types of investments fluctuate with the financial market, money market accounts don’t lose value, and they reliably pay a variable rate of interest.
With money market accounts, your money is always within reach.
As a type of on-demand liquid bank account, a money market account allows you to withdraw funds when you need to without penalties. Currently, there’s no limit on the number of withdrawals that can be made each statement period. Online and mobile banking make it even easier to access your funds, deposit checks remotely, and make electronic transfers.
Money market accounts provide peace of mind.
Unlike investments such as mutual funds and money market funds, money market accounts are insured by the Federal Deposit Insurance Corporation (FDIC). That means you won’t lie awake at night worrying about whether your money is safe when financial markets are volatile.
With interest rates strong today, there’s never been a better time to open a money market account. CIT Bank offers a 0.45% APY1 (that’s more than six times the national average2); quick and easy access to your funds; a minimum opening deposit of just $100; no opening or maintenance fees; and the security of knowing your money is FDIC secured.
Click here to learn more about CIT Bank money market accounts.
1 APY — Annual Percentage Yield is accurate as of November 15, 2021. Interest Rates for the Money Market account are variable and may change at any time without prior notice. Fees may reduce earnings.
2 Based on comparison to the national average Annual Percentage Yield (APY) on money market accounts as published in the FDIC Monthly National Rates and Rate Caps, accurate as of November 15, 2021.