When it comes time to finding a solution that will help you to grow your money, whether you are saving for something special or just putting money away for a rainy day, there are more ways to do it than through a typical savings account. Savings accounts are a great way to put money aside so you won’t be tempted to spend it as easily as you would with a checking account. However, the interest that you earn on a typical New Bedford credit savings account won’t be as high as what you could earn with other investment and savings solutions. A money market account is a great way to boost your earnings and put your money to work for you, and you can get one at St Anne Credit Union in New Bedford.
One of the Perks!
Being able to open a money market account is just one of the many perks to working with a local credit union. If you don’t have any experience with this type of financial institution, it is very similar to what you will find at a traditional bank with one major exception. A credit union is a non-profit organization, which means that they don’t work for the financial gain of a group of board members or bank presidents. A credit union works for the people. In fact, when the investments of the credit union pay off, the increase gets passed on to the members in the way of increased interest for savings and other investments, lower fees and better loan opportunities for cars and homes.
You can access your account through credit union online banking programs, just as you would with a traditional bank. You can also move money from your checking account to your savings account and take advantage of other typical opportunities. A credit union is limited to a specific group of people, meaning that not just everyone can join and become a member. For example, St Anne Credit Union in New Bedford is limited to people who work or live in Plymouth or Bristol counties in Southeastern Massachusetts. Other credit unions may also restrict membership based on other criteria, including where a person works, the industry that they work in and other inclusive demographics.
What Is a Money Market Account?
Also known in the industry as a money market deposit or money market savings account, a money market account is a great tool for members of a local credit union online banking institution. A money market account is a special type of account that can be used to increase the amount of money that you are able to save. Speak with your local representative at the credit union in New Bedford, but like other credit union accounts, the money market account is typically insured by the National Credit Union Administration (NCUA), just as you would see at a bank with the Federal Deposit Insurance Corporation (FDIC). This insurance protects your money up to $250,000.
Restrictions will also apply to a money market account under the federal regulations. For example, account holders can only make up to six transfers or withdrawals per month. However, the payoff for placing your money into a money market account at your local New Bedford credit savings is that the interest you receive will be higher than a typical savings account. Depending on the type of money market account that you get, there may also be a minimum balance required in order to maintain the highest interest rate. Once the balance drops below that level, the account will be converted to a regular Share Savings at the lower interest rate.
Advantages to a Money Market Account
While we have already talked about the increased interest available with a money market account versus other savings solutions at your credit union online banking program, there are other advantages to getting this type of account at St Anne Credit Union in New Bedford. These special savings accounts will often yield a better payoff than a typical short-term certificate of deposit (CD) account, regular savings or checking.
While the market fluctuates depending on the financial health of our economy, here are some figures to show you a typical average comparison between these different types of accounts based on the annual percentage yield or APY:
- 0.05% – Share Savings with a minimum $25 balance
- 0.05% – Christmas Club with a minimum $1 balance
- 0.20% – Money Market Deposit Account with a minimum $10,001 balance
- 0.25% – Money Market Deposit Account with a minimum $50,001 balance
- 0.05% – IRA Savings Account with a minimum $25 balance
- 0.50% – Certificate of Deposit with a minimum $1,000 balance for 12 months
Speak with your local representative at St Anne Credit Union in New Bedford for current interest rates on New Bedford credit savings, credit union online banking options and our popular money market account. Give us a call at 508-993-0011 or stop by our location on Union Street in New Bedford, Massachusetts to get more information on how to grow your money at St Anne Credit Union.