There are many different types of savings accounts. While they are all in place to help customers save and grow their money, it is important to identify which type meets your needs so you can reach your goal(s) efficiently and effectively. If you’re looking for higher yields and greater flexibility, a Money Market Account is a good option to consider.
A Money Market Account—also known as a Money Market Deposit Account or Money Market Savings Account—is a specific type of savings account that offers a higher interest rate in exchange for larger-than-normal deposits and balance minimums. The benefit is that you receive more interest with less risk. This type of account is ideal if you have a relatively large sum of money in an account that is not currently earning a competitive rate of interest.
Certain limits do apply, and you should ask your bank about the features and limitations of any Money Market Accounts that you’re considering. Generally, Money Market Account holders are limited to no more than six withdrawals per month, either by check, debit card, draft, or electronic transfer. Withdrawals or payments by ATM, in person, by mail, messenger, or telephone check (where payment is made by using your checking account number and bank routing number) do not count against the six-transaction limit. There is typically also a minimum deposit required to open a Money Market Account.
Understand the Differences
Keep in mind that a Money Market Account is different from a Money Market Mutual Fund, or a Money Market Fund. Where Money Market Accounts are offered by banks, Money Market Funds are offered by investment companies and similar firms. A benefit of a Money Market Account at a bank is that it is insured by the Federal Deposit Insurance Corporation (FDIC) up to the legal limit of $250,000. Alternatively, Money Market Funds are not insured by the FDIC or the NCUA, which means you could possibly lose money investing in a money market fund.
NVE Bank, as one of the largest mutual banks in northern New Jersey, offers a selection of high-performance, high-yield money market savings vehicles with unique features to suit your needs.
• NVE’s Liquid Assets Money Market Account is a true money market savings account with a check-writing feature. This is recommended for depositors who maintain a balance in excess of $15,000. With this type of account, you can make up to six preauthorized transfers or withdrawals by check, POS, draft, or similar order to a third party per statement cycle.
• NVE’s Premier Money Market Account is an exclusive money market account for those depositors who maintain a balance in excess of $25,000 and want access to their funds while earning higher interest. With this type of account, you can make up to six preauthorized transfers or withdrawals by check, POS, draft or similar order to a third party per statement cycle.
*Fees can reduce earnings. As always, do your research and ask your bank to answer any questions you have before opening a new account.
Learn how NVE’s products and services can help you with your financial needs by visiting our website. You can also visit one of our 12 branches, conveniently located throughout Northern New Jersey, or call 1-866-NVE BANK (683-2265).