The amount of money you want to place in a money market deposit account depends on your personal situation and how cautious you are when it comes to money management.
Because your funds in money market accounts are FDIC insured up to the maximum amount allowed by law, they are among the safest places to put your savings. You may still want to ask yourself a few basic questions as you decide how much you should deposit in a money market account:
- How secure is your job?
- How much do you spend on a monthly basis?
- What life and career stage are you in?
- How comfortable are you with taking on financial risk?
Money market accounts are a popular choice for an emergency fund or reserve. That's the money financial planners suggest setting aside to protect yourself from life's unexpected downturns, such as a big home repair or, medical expenses or job loss. The amount experts recommend putting in an emergency fund depends on your circumstances, but is usually around 6 months or so.
The security of a money market account also can be appealing as you're nearing retirement, when you don’t want to take risks with your money. Many people nearing retirement begin moving their retirement savings from higher-risk options like mutual funds and stocks to lower-risk options to avoid last minute losses to that hard-earned nest egg.
Whatever your savings goals, Ally Bank is here to help. With an Ally Bank Money Market Account, you earn 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. You can use any Allpoint no-fee ATM—plus receive up to $10 reimbursement for fees charged at other ATMs nationwide each statement cycle. You also get free standard checks and a debit card for convenient access to your money.
Learn more at AllyBank.com or call live customer service anytime, 24/7 at 877-247-ALLY (2559) today.
Ally Bank, member FDIC