Monday, December 24, 2018

Why You Should Consider Money Markets in 2019

Money Markets

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 Market Options

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 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.