Key Takeaways

• • • A money market account includes features of both checking and savings accounts.
    • A money market account may be a good choice if you’re saving toward a short-term goal.
    • Check fees, balance requirements and transaction limits before opening an account.

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    Saving money is something most people agree is important. Whether you’re saving for emergencies, a big purchase, or education, there’s plenty of advice out there. We believe putting money in the bank is a smart way to save, and one option to consider is a money market account (MMA).

    An MMA is a type of account offered by banks and credit unions that combines features of savings and checking accounts, including:

    • MMAs usually offer higher interest rates than traditional savings accounts. However, rates are variable and can rise and fall depending on market conditions.
    • Unlimited deposits.
    • Debit cards for purchases and ATM withdrawals.*
    • Check writing privileges.

    Because they’re designed for saving, MMAs can limit the number of transactions you can make each month. In addition, most banks require a minimum initial deposit to open and require you to maintain a certain balance level to avoid fees.

    Money Market Account
    Advantages	Disadvantages
    Higher interest rates	Limited transactions
    Debit card access*	Minimum balance requirements
    Check writing	Potential fees

    An MMA may be a good choice for you if you’re saving toward a specific goal like a new car or a down payment on a house. You typically earn more interest than a standard savings account and you can access your money if needed. Check out Lake City Bank’s savings options here.

     

    *Varies by institution