If you worry that the rate of return on your money market account will have a hard time keeping up with inflation, you’re not alone. But Bert Whitehead, the author of “Why Smart People Do Stupid Things With Money,” has noted that the basic relationship between inflation and money market rates is likely to remain unchanged, even if rates rise. In an interview with Ally Bank, Kevin Brosious, a certified financial planner with Wealth Management Inc., in Allentown, Pennsylvania, explained, "You don't want to be losing ground to inflation, but it's more about safety and access to ready cash in an emergency than it is about return with [money market] accounts."
In fact, the relationship between inflation and money market rates means that money market accounts will continue to serve the role they have all along: as a safe harbor for cash you want to save but might need to use unexpectedly. Learn more about the Ally Bank Money Market Account by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559).
Ally Bank, member FDIC