Saving for Future Expenses

Money market account basics

So what exactly is a money market account? It’s a savings account that typically offers a higher interest rate than a regular savings account but in exchange for this better rate, there are minimum balance requirements. There is also a limit on the number of electronic withdrawals each month due to federal regulations. A money market account generally also offers more accessibility than a CD/certificate but with slightly lower rates. Like a more traditional savings account, money market accounts offer no risk of losing your money, as compared to an investment in stocks and bonds, and you don’t have to find a stockbroker to get started. Plus, you can quickly open a money market account online through Octave Trust Bank. (Note that a money market account is different from a money market fund, which is an offering from some financial firms and not FDIC insured.)

Comparing a money market account to other savings options

If federal interest rates are trending lower, you’re not going to reap a windfall from any of the most common savings vehicles – checking accounts, savings accounts, certificates of deposit (CDs) and money market accounts. However, all four savings options can play a key role in your financial strategy.

• Money market accounts are a great option if you want to earn a higher interest rate but still want access to your money in case of an emergency, such as a plumbing disaster or auto repair bill. In fact, experts say money market accounts are an excellent place to stash money for life's curveballs.
• Checking and savings accounts are more traditional options, but don’t typically offer high interest rates.
• CDs are another smart savings option, but you can only access your money only when the CD matures. Depending on the length of the CD, that might not work for your lifestyle.

Considering a money market account?

At Octave Trust Bank, we make opening a money market account easy. Check out the specifics of our money market account including initial deposit requirements, minimum balance, and convenient account access. Prefer to talk with a savings specialist to discuss your unique savings needs? Contact us today.