What Is a Money Market Account at a Credit Union?A Certificate of Deposit (CD) and a Money Market Account at a credit union are some of the top choices to grow your money. While both have a higher saving potential, they also have key differences. CDs are a timed deposit meaning you agree to keep your funds locked in a certain period of time in exchange for earning a fixed interest rate for the entire term. If you withdraw your money before your CD matures, you may pay fees. On the other hand, the features of a money market account could be seen as a mix of a savings and checking account. With a money market account, you’re allowed to deposit and withdraw money, making it more accessible. CCCU shares other features of a money market account and why you should consider keeping your funds in a money market account. AccessibilityUnlike a CD that is locked in during the term, a money market account enables you to deposit and withdraw funds when needed. It’s important to take note that some money market accounts may impose restrictions on the number of withdrawals or transfers that can be made each month. Competitive returnsAs mentioned, money market accounts offer higher interest rates compared to traditional savings accounts. Credit unions are known for offering more competitive interest rates than banks. Money market investments are also generally considered to be low risk, which makes them a better option if you are looking for a safe investment strategy. Insured fundsMoney market funds at CCCU are insured by American Share Insurance (ASI) up to $500,000 per account. While accounts at other financial institutions are insured differently, these organizations typically protect their customers’ deposits for up to a certain amount per person. Listen to The Perfect Bite’s episode 61 to learn more about keeping your money safe at your financial institution. SummaryOverall, a money market account is a safe and convenient resource to grow your funds while earning interest and still having the flexibility to access your money when you need it the most. CCCU offers money market accounts, aka More Money Accounts, with no terms to make your saving goals simple and achievable. For more information about opening a CCCU Money Market Account, please visit www.CCCULV.org or call us at 702-228-2228. Don’t forget to use our free Money Market Account Calculator to see how much your money will grow over time. |