When it comes to finding the best method for saving and investing your money, there’s no better way to get started than with a New Bedford share savings account at St Anne Credit Union. There are lots of ways to use a credit union savings account to your advantage, but when you are ready to really grow your money and boost your savings for retirement, college or any other purpose, you might want to consider a money market account.
You might have looked into this type of investment via your credit union online banking website, but wondered what the difference is between the two types of accounts. Today we’re going to talk about the difference between credit union savings and a money market account, so you can decide for yourself which type of account is better for your unique situation. Once you have the facts about both, you’ll be able to determine which one meets your needs best.
What is a Credit Union Savings Account?
When you open a membership at your local New Bedford credit union, the first account that you will open is a credit union savings account. That is the basic account required to launch your membership. There are many different requirements for joining a credit union based upon specific criteria.
For example, some credit unions only server workers of a certain organization, such as a teachers’ union or group of workers from a specific company or trade. St Anne Credit Union in New Bedford, Massachusetts is available to people who live or work in Bristol and Plymouth counties right here in Southeastern Massachusetts. There are no other requirements with regard to trade or profession.
A New Bedford share savings account is very similar to a traditional savings account that you would have at any other type of banking institution. The difference is that with a credit union savings account, you will often receive a higher interest rate than with a basic savings account anywhere else. You can check your account, interest and status with credit union online banking via the St Anne Credit Union website.
What is a Money Market Account?
Also known in the financial industry as a money market deposit account, this type of account is a special variation created by financial institutions that is sort of like a savings account, but provides a higher interest rate. Credit unions are able to take the money that members invest into a money market account and put it into other investments that are very safe, but that yield a higher interest rate than a basic credit union savings account.
Investments such as municipal bonds, certificates of deposit, treasure notes and other low risk options. There are certain regulations on what can and cannot be done with member money that is invested in a New Bedford share savings or money market account to protect consumers from risky investments. Most of these deposits require longer investment periods in order to get the higher payout, so make sure to ask about any restrictions.
Members of St Anne Credit Union in New Bedford, Massachusetts can open up a money market account with a minimum deposit of $2,500.00. There are no restrictions as to the amount of time that the money must stay in the account, as there are with a certificate of deposit or other type of investment account, however if the balance drops below the $2,500.00 threshold, the interest rate will drop to the rate used for the NOW Account. For more details on what is required to grow your money in a money market account or in your New Bedford share savings account at St Anne Credit Union, give us a call or stop by our Union Street location.
The Advantages of a Money Market Account
While there are a few requirements that separate a money market account from a basic credit union savings account, the advantages associated with choosing this type of savings program are clear. You can monitor all of your accounts through credit union online banking websites for St Anne Credit Union so you will see how your money is growing. Speak with an account representative at the local office to find out more about how interest is earned and when it will be added to your account.
Also make sure to ask about any restrictions that might be specific to your particular credit union, as some will require you to wait a short period of time before making a withdrawal, limit you to a specific number of withdrawals in a cycle and penalties might apply if you go against those restrictions. While any requirements for a money market account will be much less imposing than with a certificate of deposit or other type of investment program, it is important to know what is required so you can maximize your earnings and experience with the opportunity.
To find out more about the New Bedford share savings, checking, money market account and other types of credit union savings and investments available through St Anne Credit Union, please give us a call at 508-993-0011 or stop by and speak to a representative in person. Our team will be happy to help you start a membership, answer any questions that you might have or help you sign up for credit union online banking and other helpful services.