Saving money is necessary in today’s world. Saving money is a crucial element of our lives, whether we are salarymen, business owners, or students. Even young children are aware of the need of saving money. People have piggy banks at their house to save money, or they save money through banks, and some invest in the hopes of making a profit.
You can save money for a variety of reasons. One way of saving money is opening a Money Market Account.
Money Market Account
According to Investopedia, a money market account is an interest-bearing account at a bank or credit union—not to be confused with a money market mutual fund. Sometimes referred to as money market deposit accounts (MMDA), money market accounts (MMA) have some features not found in other types of accounts. Most money market accounts pay a higher interest rate than regular passbook savings accounts and often include check writing and debit card privileges. They also come with restrictions that make them less flexible than a regular checking account.
Money market accounts have historically offered greater interest rates than normal savings accounts. However, today’s rates are comparable. Many MMAs, on the other hand, have greater deposit or balance requirements than conventional savings accounts.
Benefits of a Money Market Account
When compared to the stock market, money market accounts may not provide the best profits. Despite this, money market accounts have several advantages.
- It Can Be Insured and Secured
Money held in a money market account is less risky than money held in equities and bonds or other investment vehicles. If you create a money market account with a reputable institution that is FDIC-insured, you may rest assured that you will be protected to the utmost extent allowed by law if the institution fails. The FDIC insures MMAs up to $250,000 per depositor.
- Funds Are Always Available
Money Market accounts are ideal for users who are unsure when they may need to withdraw their funds due to their accessibility. The availability of funds is one of the most appealing advantages of money market accounts. Money Markets do not have a maturity date or term requirement, unlike other saving or investment vehicles that require maturity dates to withdraw money. Most money market accounts include access to an ATM card.
- It Has the Potential to Provide Higher Interest Rates
One of the benefits of money market accounts is that they allow you to earn more interest than a checking account. Money market accounts provide a higher rate of return than traditional savings accounts. Though it will not be comparable to other investment schemes that can double or triple your money in stocks or crypto coins, it will be the safest option to save money with a guaranteed return. The good news is that interest rates will always have the ability to rise.
Allow Wealtheo to Help You on Your Way to Saving Money
In today’s fast-paced world, having a reliable platform to guide and educate you on how to save your hard-earned money is important. In our digital age, there are now numerous ways to improve your financial status. Traditional methods of keeping and saving money are being phased out in favor of newer methods. These options can be confusing at times, and they require expert counsel because not all saving methods are safe.
Wealtheo™ is an online self-paced training program that focuses on personal financial literacy. Wealtheo™ will show you how to apply time-tested methods to improve your financial health.
Our purpose is to improve lives, one family at a time, by teaching them good financial principles, giving educational tools to help them reduce debt and become more financially literate, and providing opportunities to become entrepreneurs for those who want to achieve financial independence.