How Does a Money Market Account Work?

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<h1>How Does a Money Market Account Work?</h1><strong> Author: <a href='http://www.articleseen.com/profile_Jess Hall.aspx'>Jess Hall</a></strong><br /><p>If you’re looking for a safe place to store your money while getting a return that’s comparable to a savings account, a money market account may be the right choice for you. Money market accounts blend a combination of popular banking features into one reliable, insured product that you can use to save for everything from a vacation, to your child’s college education. Here’s how they work, and how you can get the most out of a money market account. An Account that Pays You Back One of the greatest advantages of a money market account is that you get the benefit of compound interest. This is interest that is paid to you in addition to the interest the bank has already paid you. You can think of a money market account as similar to a CD, except that you can access your funds up to six times per statement cycle if you wish. The interest rate you’re paid on a money market account versus a CD is less – but many people are glad to have the added flexibility of being able to get to their money when they need it, rather than paying a penalty for early withdrawal. Some money market accounts, such as those offered by www.aurorabankfsb.com not only give you the opportunity to make up to six withdrawals each statement cycle, but they also offer you a convenient array of ways to do it – such as by ATM, electronic banking transfer, telephone transfer, authorized and pre-authorized withdrawals. Having easier ways of reaching your funds gives you better ways to manage your spending. An Excellent Savings Vehicle Money market accounts give you great incentives to save, too. As long as you keep your account at or above the minimum balance (which can start at just $1,000), you won’t pay any monthly fees and you’ll earn a competitive interest rate on your money. This is an excellent way to grow your savings without facing stiff penalties, account management charges and other fees that can nibble away at your hard-earned cash. You can even attach your money market account to other bank accounts (such as checking) to help you avoid overdraft fees. Grow Your Deposits Faster! When you open a money market account, you’ll get a register, similar to the type you get when you open a checking account. Each month, the bank will send you a statement which includes your compound interest. You’ll be able to see any withdrawals you’ve made, any fees and most importantly, how much money you’ve earned during that time. Of course, rather than rely entirely on the bank, you should also independently monitor your withdrawals and deposits on your register, to ensure that your statement matches up with the bank’s. This is called reconciling, and is a vital part of good financial management skills. Keep in mind that in order for your deposits to be safe and FDIC-insured, you’ll want to open an actual money market account, not invest in money market funds – as there is a significant difference. Money market funds are not FDIC insured, but money market accounts are at member banks – which means that your money is protected up to $250,000 per customer, per account type, against the (highly unlikely) insolvency of the bank itself. What’s more, opening a money market account and getting all these savings benefits for yourself is incredibly simple. Just go to the Aurora Bank money market page at www.aurorabankfsb.com and click the Open Account button. You’ll be walked step by step through the process and will receive a Welcome Kit in the mail with all the details on your new account. Happy Saving! </p><strong>About the Author:</strong><br />Jess Hall writes out of Jersey City about different investment opportunities, including how to get competitive money market accounts through online banks like <a rel="nofollow" href="https://www.aurorabankfsb.com/consumer/banking/mmarket">www.aurorabankfsb.com</a>. Always looking to find the best rates to diversify her personal portfolio, she tends to visit <a rel="nofollow" href="https://www.aurorabankfsb.com/consumer/banking/mmarket">https://www.aurorabankfsb.com/consumer/banking/mmarket</a>.<p> Article Source: <a href='http://www.articleseen.com/Article_How-Does-a-Money-Market-Account-Work_77134.aspx'> http://www.articleseen.com/Article_How Does a Money Market Account Work?_77134.aspx</a></p>

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Keywords : money market, money market account, market account, money market accounts, market accounts,

Category : Finance : Finance