Money market accounts have become a popular savings option in recent years, but because of the wide array of variations available, some consumers may still be confused about these accounts. What makes a money market account different from a savings or an interest-bearing checking account? How do money market accounts work?
A money market account works much the same as other bank accounts. You open one by providing the necessary information and making an initial deposit. Many banks, including Ally Bank, give you the convenience of being able to do both from the comfort of your own home. Then, your money will earn interest at a variable rate, which means it can go up or down over a period of time. The interest can be compounded daily, monthly, or even annually, depending on the bank. The more often the interest is compounded the better. You can access your funds with checks or a debit card within federal transaction limits. Keep in mind that it’s important to consider things like maintenance fees and minimum balance requirements, as well as interest rates, when you’re shopping for a money market account that will work for you.
A money market account simply gives you more flexible access to your funds than a regular savings account. In some ways, you could think of the account as a kind of "hub" for your cash. Throughout any given month, you have cash coming in from perhaps a single or maybe a few sources, but cash probably travels out to many more places—your bills, your savings, daily expenses, and so on. A money market account can give you a place to put at least a portion of that money before you use it. Then, when you need it, you have lots of options to access it. Maybe it's where you keep the money you'll need to pay your child's tuition bill or property taxes, home insurance premiums or other such recurring expenses. Or maybe it's a place to keep your emergency fund. You could even open a number of accounts for a number of different uses, as some consumers do, to help you manage your budget more effectively.
With an Ally Bank Money Market Account, your money earns a variable rate that's consistently among the most competitive in the country according to Bankrate.com, and you can open and fund your account with any amount. We compound interest daily to maximize your return. You get free standard checks and a debit card for convenient access to your money. You can also use any Allpoint no-fee ATM—plus receive up to $10 reimbursement for fees charged at other ATMs nationwide each statement cycle.
Learn more at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559).
Ally Bank, member FDIC