What is a money market account?
A money market account is a type of savings account that typically pays a higher interest rate than a traditional savings account
. Money market accounts do come some with some limitations including a higher minimum balance to open, a higher minimum balance to maintain on the account to avoid a monthly fee and a certain number of withdrawals allowed per month.
The key benefit to a money market is earning more interest as you deposit more money into the account. Money market accounts reward higher balances and because of this may be a good choice if you have a larger savings goal.
Your funds in a money market account are also FDIC insured.
What are the current rates for Merchants Bank’s Diamond Money Market account?
You can use the branch selector above to see Diamond Money Market rates for your specific location.
The rates for this money market account are tiered, which means that there are different interest rates you can earn based on the balance in the account. As your balance moves up the account tiers, your interest rate increases.
What is the difference between a money market account, savings account and certificate of deposit?
While these accounts may seem simliar, there are a few key differences:
- Savings Accounts have parameters that encourage you to deposit money and keep it in the account to accumulate interest. For example, a savings account does not have a debit card and typically allows only a certain number of withdrawals.
- Money Market Accounts are a type of savings account that often have higher interest rates and therefore more earning potential.
- Certificates of Deposit are a different savings vehicle that require you to keep money in the account for a certain amount of time without withdrawal in order to earn a special interest rate.
To learn more about the differences and advantages of these types of accounts, read our blog
Why would my business want to open a money market account?
A business may find several benefits to opening a money market account, including:
- Earning more interest than a traditional savings account.
- Having easy access to funds through withdrawals unlike other savings vehicles, specifically certificates of deposit.
- Knowing their deposits are safe with up FDIC insured limits.