When you're considering how to invest your money, it's
normal to be a little hesitant or unsure. Stocks and bonds can offer some
excellent growth opportunities, but investment doesn't come without risk. Money market
accounts are a happy
medium by putting money somewhere and seeing it grow without high risk and with
a great deal of safety.
What are Money Market accounts?
A money market account is an interest-bearing account
that typically pays a higher interest rate than a savings account and which
provides the account holder with limited check-writing and/or ACH ability.
Money market accounts offer the account holder benefits typical of both savings
and checking accounts. This type of account is likely to require a higher
balance than a savings account.
What are the other benefits?
FDIC Insurance. The Federal Deposit Insurance Corporation
(FDIC) insures deposits and the interest accrued up to the maximum amount
allowed by law- currently $250,000 for a single owner. FDIC insurance protects the money in your money market account the same
way it does in regular savings accounts.
Money markets are a great home for emergency savings,
something you can access immediately. One way to think of a money market
account is to think of it as less liquid than a checking account, but more
liquid than bonds or Certificates of Deposits.
What is MSB offering for Money Markets?
Currently, MSB offers a regular Money Market Account
($1,000 to open) and an Indexed Money Market Account ($10,000 to open) for both
consumers and business customers. Interest earned on either of these accounts
is based on account balance tiers. Interest is calculated and paid on the
entire balance in your account. In the Indexed Money Market Account, interest rate
is based on the weekly average 4-week Treasury Bill secondary market rate
Constant Maturity Treasury Rate (“CMT”) as published by the Federal Reserve in
their H.15 Release located at their website www.federalreserve.gov/release/h15.
Interest compounded daily and credited to account monthly. Transaction
limitations in both Money Market accounts will apply and fees may reduce
earnings.
At McHenry Savings Bank, we are a full service financial institution with a
complete line of deposit and loan products. We have been serving the banking
needs of the residents of McHenry County since 1955. We are local people making
local decisions. Call us (815) 385-3000.
Sources:
http://money.howstuffworks.com/personal-finance/financial-planning/money-market-accounts.htm
https://www.investopedia.com/terms/m/moneymarketaccount.asp
https://finance.zacks.com/advantages-disadvantages-money-market-accounts-2170.html
