A Happy Medium

There are many options for keeping your money safe and earning a little extra from interest. Like a savings account, share certificate, or a money market account!

                A money market account (MMA) could be seen as a happy medium between a savings and checking account. That’s because a money market account offers the ease of a checking account and the earning potential of a savings account—in other words, high interest rates AND accessibility. In fact, an MMA will usually offer higher interest rates than a typical savings account. This means that you can earn more in interest on the same amount of deposited money.

                One of the biggest benefits of an MMA is that you usually have easier access to your money than other high-yield savings accounts. At Chessie, money market accounts come with checks, meaning that you don’t need to transfer money to a checking account before making payments or purchases. This makes it easy to use your MMA when you’re in a bind or need quick access to more than is in your checking account.

                But an MMA doesn’t work exactly like a checking account. There are almost always limits on the amount of transactions that can take place within a specified time period (generally between 3 and 6 in a month). Chessie allows 6 withdrawals or transfers per month on our accounts. When that limit is reached, you can face penalties or fees for additional transactions. If you’re considering an MMA, be sure to check with your bank or credit union for specific regulations.

                To go along with a higher interest rate, an MMA will often require a bigger initial deposit when it’s opened. The minimum required balance, or amount of money that must remain in the account if you want to avoid fees, is also often higher. This can make it more difficult to open and maintain an MMA than a traditional savings account with a lower threshold.