How to Boost Savings with a Money Market Account
If there's one thing most of us could use, it's more money in the bank for a rainy day, an emergency, or to build wealth. But for many of us, our paycheck is long gone, with barely a dust trail before it's even arrived in our account. If you're like many, you tuck back some of your hard-earned cash each payday, but far too many people rely on what most financial institutions offer — a basic savings account.
There's nothing wrong with a regular savings account. We're fans of any way you can save for tomorrow. But money market accounts are often overlooked and offer higher interest yields and easier access to your funds than a regular savings account.
Let's dig into the topic and take a look at what you should know to decide if a money market account makes sense for you.
Unveiling the Power of Money Market Accounts
There's more power behind a money market account than a regular savings account.
Unlike regular savings accounts, a money market account is more like a hybrid account. So, it's like getting the best of both worlds — checking and savings, which allows you to withdraw funds† with a debit card, write checks, and maximize savings with a higher interest rate. And they're generally safe. Like regular savings accounts, the FDIC or NCUA backs up money market accounts for up to $250,000.
So, how do you use a money market account to grow your wealth? Let's discuss that next.
The Steps to Financial Growth
Opening your money market account is similar to other savings and checking accounts. However, some financial institutions require a higher minimum deposit while others don't. So, always check to understand better what to expect. Since money market accounts work similarly to regular savings and checking accounts, managing your account is crucial to maximize the benefits you gain, especially with compounding interest.
Compounding interest works against you with credit cards and loans, costing you more money — the price of borrowing. But the opposite is true with a money market account where compounding interest works in your favor by helping your savings grow the longer it stays in the account.
Navigating Choices for Optimal Results
Remember how we said money market accounts were a blend of checking and savings? That's because you can easily access your funds with a debit card. Many money market accounts also give you check-writing privileges.
There's no need to transfer funds from one account to another when you require funds. They’re readily available, right at your fingertips, when you need them.
Higher interest in your savings is also a huge bonus. Many money market accounts offer tiered interest rates. The more money you save in your money market account, the higher the interest rates you'll earn, and the more your savings grow.
Check Out Extraco's Current Rates
Keys for Financial Progress
Increase the success of your financial progress by setting the right goals — SMART goals. Choose one long-term goal you want to reach. Set your expectations by making your goal Specific, Measurable, Achievable, Relevant, and Time-bound. Remember, SMART goals allow you to visualize and track your progress. But don't stop there. Break your long-term goals into short-term or step goals to give you small wins.
The more you save, the sooner you reach your goal, build your emergency fund, and save to fund your dreams.
The Final Word
There's a clear distinction between money market accounts and regular savings accounts. If you're looking for more ways to strengthen your savings, build an emergency account, or save for something special like a vacation, a new car, or even a down payment for a home, consider the many benefits of a money market account. After all, you'll gain a higher interest rate but still have liquid access to your money if needed.
Best of all, setting up a money market account is easy. Visit your local Extraco Banks branch or open your savings account online and at your convenience.
Open A Money Market Account Today
