What you should look for in a money market account
Tips for comparing money market options
How to know if a money market account is right for you
The need for flexible access to your savings shouldn’t mean missing out on interest returns. With a little homework, you can find a money market account that keeps your money safe, gives you flexible access and offers a competitive interest rate to help your balance grow.
Sure, you may want to find the best money market rates, but it may not be wise to rush to open whatever account happens to be offering the highest rate the day you start looking. There’s more to making sure you choose the account that works best for you. Here’s how to find the best money market accounts out there, great rates included.
Look for a high APY
Compound interest is your friend when it comes to getting the most out of your savings. It’s also a key component of your annual percentage yield (APY) — the total amount of interest you earn on a deposit account over one year — making it an essential consideration for a money market account. A higher APY means your savings will grow faster. Some banks compound interest monthly, quarterly or annually. To maximize your return, look for a bank that compounds daily.
Calculating your interest might seem like homework, but it can help you plan ahead by offering a map of how different balance tiers could affect your earning potential. Skip the math by using our calculator to see how much you can expect to earn based on your projected balance and current rates.
Be aware that money market account rates are variable, which means they can go up or down after you open the account. Some banks offer services to alert you when your rate changes. Keep an eye on things even after you’ve decided on a particular account, so you don’t miss out on potential earnings.
Tip: Because APYs take into account frequency of compounding, comparing APYs rather than interest rates will give you a clearer picture of what you’ll earn.
Prioritize digital banking access
As you compare money market accounts, be sure to consider online-only options. Not only do digital banks offer the convenience of easily accessing your money on the go, they tend to offer higher APYs because they don’t have the overhead costs of their brick-and-mortar counterparts.
Ally Bank’s Money Market Account offers many of the same digital conveniences of our other banking offerings. For instance, with Ally eCheck Deposit℠, you can deposit checks right from your smartphone into your money market account. Just snap a photo, and you’re good to go.
Map out ATM locations
While many of your payments may be digital, you’ll likely have the need for cash from time to time. Make sure your money market account allows for easy withdrawals from an ATM when the occasion arises.
Ally Bank’s Money Market Account gives you flexibility to bank your way, including unlimited ATM withdrawals at one of more than 43,000 Allpoint® ATMs. We’ll even reimburse you up to $10 per statement cycle for fees charged at other ATMs nationwide.
Watch out for balance requirements and unexpected fees
Make sure you understand the terms of any money market account you consider. Pay attention to things like maintenance fees, introductory period end-dates and a minimum balance requirement. You don’t want to be surprised by penalty fees if you fall below the necessary amount. At Ally, you don’t have to worry about minimum balance requirements or maintenance fees.
Check for FDIC coverage
Along with an attractive rate, you want your money market account at a reputable bank backed by the FDIC (Federal Deposit Insurance Corporation). Money in an FDIC-insured bank, such as Ally Bank, is covered up to $250,000 per depositor, per qualifying account ownership category.
Don’t sell your money market account short
Remember, all money market accounts aren’t created equal and neither are the banks that provide them. In addition to competitive rates, you should also expect top-notch customer service and a few extras, like a mobile app and remote deposit options, that simply make banking more convenient. Be sure to find the best money market account to help you reach your financial goals.