For many people, savings accounts are their go-to investments. However, higher-yield options are available. If you have a larger amount of capital, a money market account may be better for long-term investments. According to banking professionals at River Bank in La Crosse, WI, if you meet the conditions of a money market account, it’s worth consideration. Not only will you make more money over time—you’ll also enjoy plenty of conveniences.
3 Things to Know About Money Market Accounts
1. High Interest Rates
On a basic level, a money market account is a savings account; however, they usually come with higher interest rates, meaning higher returns. Although they require a larger upfront deposit, many money market accounts will gain value more quickly through a higher yield, giving you a greater, hassle-free return. It’s a great alternative to more mainstream investments if you have the capital to deposit.
2. Checking Capabilities
Another great benefit of money market accounts is the checking capabilities. While they’re marketed as an investment tool, they still offer the conveniences of withdrawals, check writing, and, in some cases, even debit cards. However, most put a limit on the number of withdrawals you can make and require that a base amount of money stays in the account. Despite this limitation, you’re still getting more accessibility than you would from a 401(k), Roth IRA, or similar investments.
Like savings accounts, money market accounts also come with government-backed insurance. An FDIC-insured account offers high-volume protection—often greater than a traditional savings account—meaning your money is safe from any catastrophes or financial crises. This is another great advantage over other investments such as real estate, stocks, or money market funds.
If you’re interested in opening a money market account, contact a banking professional at River Bank. They offer a tiered account system perfect for businesses and individuals and can help you begin investing intelligently for your future. Call (608) 788-6300 today to speak with a professional and visit the team’s website to learn about their internet banking services.