Understanding money market accounts: How you can earn more on your savings

A money market account can be a great way to earn more interest on your savings without being tied down to a long-term investment. With tiered interest rates and easy access to your funds, it's a good option for those who want a more competitive savings rate. Just be sure to read the fine print and understand the minimum balance requirements and potential fees before opening an account.

What is a money market account?

A money market account is a type of savings account that typically offers a higher Annual Percentage Yield (APY) than a traditional savings account. This is because money market accounts are invested in short-term, low-risk investments like government bonds and certificates of deposit. In addition, many money market accounts offer tiered interest rates, which means the higher your balance, the higher the interest rate you'll earn.

How do money market accounts work?

Money market accounts typically require a higher minimum balance than regular savings accounts. This is because they offer higher interest rates. With a money market account, you can deposit or withdraw funds at any time without incurring a penalty. Some accounts even come with free checks or a debit card, making it easier to access your money when you need it.

What are the advantages of a money market?

Money market accounts are a good option for savers who can meet the minimum balance requirement, want to earn more interest on their savings but don't want to be tied down to a long-term investment. They're also a good option if you want easy access to your money. Keep in mind that money market accounts may also come with fees, so be sure to read the fine print before opening an account.

Is my money safe?

The SCU Credit Union MyPremium Money Market is insured by both the National Credit Union Association (NCUA) and Massachusetts Shared Insured Corporation (MSIC). Your money is 100% insured regardless of the amount at SCU Credit Union. The coverage is a benefit of membership and comes at no direct cost to you. MSIC insures the portion of any legal, verifiable share or deposit account that exceeds NCUSIF coverage with no limit.

Our MyPremium Money Market account is for you if you are looking for a higher interest rate without being tied to a term. You can deposit or withdraw funds anytime without a penalty; interest is earned based on your balance, and interest compounds daily and is credited monthly. The MyPremium Money Market is a benefit of membership in SCU Credit Union, a member owned, non-profit organization. SCU Credit Union is dedicated to making a positive impact on the financial well-being of our members and supporting the diverse communities we serve.