The Advantages of a Credit Union Money Market Account

Ready to meet your financial goals a little quicker? One of the options you may come across in your search for savings accounts is a money market account. 

A money market account can help you meet your financial goals because it provides access to your funds, but with incentive measures that prevent you from spending too carelessly. Let’s take a closer look at how credit union money market accounts work and the benefits they provide so you can make the best decision for your situation.

How a Money Market Account Works

A money market account acts like a savings account because it allows you to earn interest, but it often provides a higher interest rate than typical savings accounts. Some money market accounts also offer checking account features, such as check writing and debit card privileges. 

Money market accounts are best for short-term rather than long-term savings. This is because financial institutions invest your deposited funds into highly liquid, short-term, low-risk securities. Once the assets mature, account holders receive a portion of the interest.

To open a credit union money market account, you’ll need to deposit a minimum amount. To keep your account active and continue earning interest, you’ll need to maintain a certain balance to avoid account restrictions or fees.

The Benefits of Credit Union Money Market Accounts

Opening a credit union money market account can be helpful in meeting your financial goals. Let’s take a closer look at the benefits you may experience from opening an account.

1. You have easy access to your account.

You don’t have to go through a lot of trouble to access the money in your money market account. Some money market accounts with debit card privileges allow you to withdraw money from an ATM as well as pay for goods or services. However, there’s a limit to how often money can be withdrawn from the account. You can also link your credit union money market account to other accounts at the same credit union and transfer money easily.

2. Money market accounts are ideal for short-term savings.

A money market account is ideal for saving and earning additional money as interest for expenses such as tax payments, a wedding or a vacation. Money market accounts have higher minimum balance requirements, which makes this type of account ideal for people who are saving for larger purchases such as booking a vacation.

3. Credit union money market accounts earn interest.

The money in your account does more than simply sit there. It also grows, collecting interest at a rate that’s often higher than traditional savings accounts. Do your research when looking for an institution where you want to open an account because different banks and credit unions provide different interest rates. For example, credit unions may provide better rates for money market accounts.

4. With a credit union money market account, you receive personalized service. 

With a credit union, you have the benefit of personalized service. Staff members know you and your goals, and they can provide valuable advice based on their knowledge of your unique circumstances.

When you open a credit union money market account, your membership supports your local economy. Credit unions also offer additional advantages, providing services for needs that are specific to your community and local knowledge that guides effective decision-making.

Credit unions are also non-profit, which means they offer lower account minimums, provide overdraft protection and prioritize customer experience. Qualifying for a loan and building a long-term relationship can be easier at your local credit union.

Boost Your Savings With a Credit Union Money Market Account

Money market accounts are high-yield options that boost your savings, resulting in larger balances and getting you closer to your goals. Explore 7 17 Credit Union’s money market account options, and open your account online today.