One of the benefits of becoming a member at your local New Bedford credit union is all of the savings and investment opportunities that are available to choose from. Beyond the basic checking and savings accounts, credit union members can invest in money market accounts, certificate of deposit (CD) accounts and IRA Share retirement accounts. A money market account is a safe place to put your savings. Credit unions will often pay a higher percentage yield for money market accounts than traditional banking systems.
What is a Money Market Account?
In the most basic of terms, a money market account is a savings account that is interest bearing at a higher rate to allow credit union members to earn money faster than they would with a basic savings account. While there are many features associated with a money market account that you are used to with other types of financial accounts, a higher minimum balance is required to open an account.
At St. Anne Credit Union in New Bedford, for example, a $2500 minimum deposit is required to open a money market account. While credit union members can access their money at any time, the interest rate will drop to the normal Main Share account rate if the balance falls below the $2500 minimum. Other restrictions may apply as well, so it is best to speak with your New Bedford credit union representative to ask questions about opening a money market account for all the details.
How to Maximize Your Earning Potential
Regardless of the type of credit union savings account you open, a savings plan should be used to protect your financial future. Some credit union members save money for big expenses, such as a down payment on a new home, buying a car, paying for their children’s college tuition or a walk down the aisle. The best way to create a successful savings plan is to set reasonable goals and then do everything you can to stick to them.
While credit union members can access their money in a money market account at any time, it is important to know that this is not a checking account or a normal credit union savings account. Additional fees can be charged if more than six checks, transfers or withdrawals are made against the account within a set period of time. If you make more than six transactions you could end up getting a fine or having your account downgraded to a regular credit union checking account.
This isn’t just for credit union members, traditional banks work under the same requirements imposed by the federal government. Again, speak with your New Bedford credit union representative about any transfer restrictions or other requirements associated with your money market account.
Will a Money Market Account Benefit Me?
Each person’s finances are different, which is why there are so many different ways that credit union members can save. However, there are a couple of criteria that can help you choose between a money market account and another type of credit union savings account, such as a certificate of deposit (CD), that might be more restrictive.
Money market accounts are good for credit union members that:
- might need access to their money in case of an emergency
- want to grow their money without making a risky investment
- have a minimum of $2500 to open an account
- are looking for new ways to boost their savings
Your New Bedford credit union representative at St. Anne can walk you through the basic steps of opening a money market account. They can also give you information on starting other types of credit union savings accounts so you will be able to make an informed investment in your future. Obviously, the most restrictions associated with a type of account, the larger the payout will be. More restrictive credit union savings accounts like certificates of deposit (CD) will pay larger APY percentages than money market accounts that allow credit union members to make withdrawals and other types of transactions.
Schedule an Appointment Today
The best way to get started is to contact St. Anne Credit Union in New Bedford to schedule an appointment to find out more about or open a money market account. There are many benefits to becoming a credit union member and access to money market accounts and other types of credit union savings accounts are just the beginning.