What Is A Money Market Account And Is It Right For You?

Saving money is an excellent habit, using this money to pay bills, use for emergencies, large purchases, and to make investments.

Money market accounts contain securities, including Treasury bills, certificates of deposit (CDs), and commercial paper (CP).

Benefits of Money Market Accounts

1. Designed For Saving Money these accounts are for intermediate savings goals, encouraging you to save money more readily by paying yourself first.

2. Safe Place To Keep Your Money Money market accounts carry FDIC insurance up to $250,000 per bank depositor ($500,000 for joint accounts), per institution,  and each account ownership category.

3. Flexibility Having An MMA At Your Bank You can manage your monetary assets with more flexibility when you have deposited funds, checking accounts, and ATM at the same bank while automating your finances to pay bills.

4. Have Higher Interest Rates Than Standard Savings Accounts They tend to have higher returns than high-yielding savings accounts, which don’t have money market securities.

5. Provide Liquid Access To Your Money You can consider MMAs as monetary assets that are part of your net worth. They are more readily accessible than other household assets.

6. Compound Interest The compounding effect helps your money grow faster. Because MMAs have higher rates, the incremental interest gain will be more significant to the principal balance, and over time, your money grows more quickly.

Arkad, as the richest man in Babylon, passes on his financial knowledge to generations of readers, which wisdom remains excellent advice to those wanting to create and grow wealth to this day.

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