Should You Open A Money Market Savings Account
The economy has really taken a lot of us on a ride recently. We are a nation of spenders, not savers, and that has really come back to bite many of us. The good news is that we can see this downturn as an opportunity to protect ourselves better in the future. Opening a money market savings account is a great first step to take.
A money market account is similar to regular savings accounts. You deposit money in the bank and you earn a certain interest rate on that money for as long as it’s there. You can withdraw it but you might lose some interest and/or have to pay some fees. It’s not quite as easy to get to as a standard checking account, but it is still liquid.
Having said that, there are some significant differences between a money market account and the ‘regular’ savings account. For one thing most money market accounts will require you to make a significant deposit to open the account. It can be as high as $1,000- $2,500. This will ensure you earn a higher interest rate, but for some people this amount is out of the question.
Another difference is the ease of access to your money. Many regular savings accounts will offer you virtually unlimited access to your money, with a money market account you are generally limited to only a few withdrawals per month. Usually between 3 -6. The …