If you already have a checking account and a traditional savings account, not to mention a certificate of deposit (CD) or two, you may be thinking, "That's good enough for me. Why should I be looking at a money market account?" Depending on your financial goals, of course, a money market account may not be the obvious choice, especially if you're comfortable with your current financial account portfolio. On the other hand, maybe it’s time to look into how a money market account works.
Money market account basics.
Money market accounts combine many of the features of other bank accounts. A money market account definition often notes that a money market account functions a lot like a savings account with limited checking account privileges. You usually earn a variable rate of interest, as well.
Who is a good candidate for a money market account?
Cathy Pareto, a certified financial planner with Cathy Pareto & Associates, Inc., Coral Gables, Florida, told Ally Bank that the ideal customer for a money market account is somebody who needs to set aside some financial reserves for emergencies; or perhaps someone who's in a transitional period about to switch jobs, homes or welcome a new baby. Pareto notes that money market accounts are a good way to save for those big expenses.
Your funds in money market accounts at most banks—including Ally Bank—are insured by the Federal Deposit Insurance Corp. (FDIC) up to the maximum amount allowed by law, which makes them a safe place to put your personal savings. This security also means they may be an attractive option for people who don't want to risk their nest eggs chasing higher returns.
The Ally Money Market Account: high yield savings with debit card convenience.
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 pay no monthly maintenance fees and you get free standard checks and a debit card for convenient access to your money. You can use any Allpoint no-fee ATM—plus receive up to $10 reimbursement for fees charged at other ATMs nationwide each statement cycle.
Learn more about the Ally Money Market Account by visiting AllyBank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC