Becoming a member of your local New Bedford credit union opens the door to many different ways to save and grow your money. Whether your goal is to put aside some savings for a down payment on a house, purchase a brand new car or save for your child’s college education, make sure to speak with a representative at St Anne Credit Union about the different types of credit union savings opportunities that are available. As a member, you can enjoy interest rates savings on auto and home loans, increased interest on a share savings, IRA or certificate of deposit account, as well as many other unique ways to grow your money. However, one of the most popular options for smart investors who are just learning the ropes, is to open a New Bedford money market account.
What Is a Money Market Account?
Very similar to a traditional credit union savings account, a money market account can carry restrictions not seen in regular savings, while paying at a higher interest rate to help you grow your money. Other rules, such as limiting the number of transactions allowed during a cycle month are also imposed, as part of the structure of a typical New Bedford money market account, whether at a credit union or some other type of banking institution.
Compared to other types of financial investments, a money market account is seen as a conservative means of investing, providing a guaranteed return. Many who dabble in riskier investments will still put some money into their money market accounts at their local New Bedford credit union, to create a balanced investment portfolio. The return on money market accounts can vary based upon the current A.P.Y. or Annual Percentage Yield.
As of this writing in 2015, the current rates for a New Bedford money market account at St Anne Credit Union was .05 percent for $25-10,000 investments, .20 percent for $10,001-50,000 investments and .25 percent for investments over $50,000. Membership at the local credit union is required, which is limited to individuals who work or live in Plymouth and Bristol counties in Southeastern Massachusetts.
Other Differences to Expect
If you are considering joining a local New Bedford credit union to take advantage of interest rates savings on loans and increased opportunities for a money market account or credit union savings options, make sure to speak with a representative to find out more about what is available. When you invest in a New Bedford money market account, make sure you understand what is required to open the account and what you need to do on your end to maximize the return on your investment.
As noted above, the minimum balance for opening a money market account will be higher than a typical credit union savings account. It will also require that a minimum balance be maintained throughout the life of the investment, otherwise the interest rate will revert to the typical Share Savings interest rate. Some credit unions require a $10,000 minimum balance to earn the higher interest rate, while others require much less, such as the $2,500 that is required by St Anne Credit Union.
Why So Many Rules?
You might be wondering why there are so many rules and restrictions for a New Bedford money market account as opposed to a typical credit union savings account. The reason why you are being paid a higher interest rate is because the credit union is using the money you invest to work for other members. You are investing in mortgages, car loans and other types of money-making ventures that the credit union gets involved in, so they need to have a minimum deposit and balance, to ensure that they have the funds available.
Credit unions are a not-for-profit financial institution. So any profits that they do make from loans and other investments, get passed back to the members as interest rates savings, improved financial services and lower fees. There are many advantages to choosing a New Bedford credit union over a local or national bank. When you join a credit union, you become a member with a voice instead of a number in an endless sea of other numbers, like many consumers experience in the banking industry.
Join St Anne Credit Union Today
If you are interested in learning more about what it takes to become a member of a local New Bedford credit union or if you want to find out how to grow your money beyond a basic credit union savings account, give us a call at 508-993-0011. You can also speak with one of our representatives by visiting our New Bedford location on Union Street.