A money market account, or MMA, is very similar to a savings account, but with some big differences. Let’s take a look at some attributes of MMAs, and how those differ from savings accounts. We’ll also look at the differences between MMAs and another popular savings product, CDs.
|Transaction Limits?||Unlimited. Except for electronic withdrawals and transfers, which there is a maximum of 6 allowed per month||Unlimited. Except for electronic withdrawals and transfers, which there is a maximum of 6 allowed per month||Any withdrawals before term is up are subject to early-withdrawal penalties|
|Minimum Deposit?||$25||$0 to open
$5,000 to earn interest
|Set Term for Maturity?||No||No||Yes|
Who should open an MMA?
Anyone who is considering opening a savings account would also do well to consider an MMA. Here are a few situations where an MMA makes particular sense:
You want a higher interest rate than you can get with a savings account, but you don’t want to use an online bank.
You aren’t willing to part with your money for as long as a CD requires.
A money market or high-yield savings account also could be a good place to store your emergency fund. It’s smart to keep this money separate from your daily-use checking account, and a higher yield might help your funds grow a bit faster.
Call us at 801-399-9728 or visit any branch to open an MMA today!