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Is a Money Market Right for You?

Woman studying at kitchen table on laptop

With so many savings and investment options out there, you might be wondering which one is right for you. If you already have a bit of money saved up and want to watch it grow, but still be able to draw from your account when needed, a money market might be right for you.

Don’t know what a money market is? A money market is a type of savings account that typically comes with a higher dividend rate than a standard saving account but requires a higher minimum daily balance. The amount of check writing and withdrawals are limited with a money market or any savings account due to federal regulations. On the plus side, you do have access to your funds at any time, which is different from a share certificate or certificate of deposit that ties up your money for a set period of time. However, because of this, certificate dividend rates are usually higher than money market rates. Below, find a quick and easy breakdown of these three money-savings options.

Money Market



Typically higher dividend rates compared to savings or checkingLow dividend rateHigher dividend rates
Variable rateVariable rateFixed rate through the length of the term
Limited number of withdrawals per monthLimited number of withdrawals per monthPenalty for early withdrawal
Limited check writing and access to ATMsNo check writing. Access to ATMsNo access to your funds through checks, ATMs

So what route will you take?

It depends on your needs, both immediate and future. Here are a few examples of when it might be a good time to consider opening a money market.

  • You have more money in your savings account than you need on a regular basis. By moving a lump sum over to a money market, you can earn more for that money.
  • You sold a valuable item, such as a second car or antique, and want that money to grow faster, but you might need to use it in case of any emergency situation.
  • You want to diversify your savings by having funds in a variety of accounts.
  • You received unexpected money as a gift or inheritance. You may need access to it but want to earn the most on it right now.

Take a look at your finances and goals, and make sure you are headed in the right direction to get the most out of your money.

Ready to open a Money Market? Check out our rates today, and reach out anytime for more info.

This information is not intended to be a substitute for specific individualized investment or financial advice. We suggest that you discuss your specific situation with a qualified financial advisor.