Friday, June 19, 2020
If you’re researching how to grow your savings without putting it at risk, then you will find more than a few options out there. As you navigate the different plans, programs, packages, and products available, you may start to see a familiar name: Money Market. So what is a Money Market account and why should you consider one over a standard savings or checking account?
One of the key advantages of a Money Market account is typically earning more interest on your money than you would in a traditional checking or savings account. Below are some of the highlighted benefits of a Money Market Account.
Rate of Return Usually is Higher
Generally, the amount required to open and earn interest in a Money Market account is usually higher than a typical checking or savings account. And the interest you earn on that money is also higher. McHenry Savings Bank (MSB) offers two types of Money Markets: the traditional Money Market and the Indexed Money Market.
The difference typically lies in the minimum amount needed to open an account and the interest rate. At McHenry Savings Bank a traditional Money Market account requires an initial $1,000 deposit to be opened, whereas an Indexed Money Market account requires an initial deposit of $10,000 to open.
Banks like MSB will also offer competitive variable interest rates that reward you - yes, reward you - for saving money in a Money Market account. The higher the balance, the higher the rate your money earns. For the Indexed Money Market, the interest rate is instead tied to the weekly average 4-week Treasury Bill secondary market rate, also known as the Constant Maturity Treasury Rate (CMT).
Secure and Insured to Protect You from Loss
Investing your money in stocks, bonds or other investment strategies may carry a high risk of loss or no loss protection at all for the initial amount you fund. A Money Market account can carry a lower risk profile when you open your account with an institution insured by the FDIC like MSB.
Easy Access to Account
The benefits of MSB’s money market accounts -includes account features you are familiar with using in checking or savings accounts, like access via checks and online banking (e.g. checking) and limited transactions per statement period of six (6) debits including checks, automatic or pre-authorized transfer or payments (e.g. savings).
Looking for a liquid savings plan for emergency needs or just a good return on your money? McHenry Savings Bank can offer you a competitive variable interest rate. Our Money Market Account and Indexed Money Market Account reward you with higher interest rates for higher balances, with an added convenience of limited check writing and online banking. As your balance grows, your account automatically moves to a higher tier.
Now more than ever, McHenry Savings Bank is committed to protecting our customers and their money. Whether you are a small business or a local family, MSB is here to help you save. Learn more about how you can save some money for a rainy day while actively grow with MSB. Call us today at 815-385-3000 or visit our website at https://mchenrysavings.com/. Member FDIC.