First Fidelity Guarantee a certificate of deposit brokerage firm that is proficient in facilitating the placement of deposits of third parties with FDIC insured depository institutions, is explaining Money Market Accounts and why it’s important to have.
First Fidelity Guarantee Lexington, KY, explains that an interest-bearing account at a bank or credit union is referred to as a money market account (MMA). Money market accounts, also known as money market deposit accounts (MMDA), include various features not present in other types of accounts. Most money market accounts include check-writing and debit card privileges and typically provide higher interest rates than standard (passbook) savings accounts. Additionally, they could have limitations that make them less adaptable than a standard checking account. They are crucial for figuring out tangible net value.
Money market accounts are financial products that are provided to customers at traditional and internet banks as well as credit unions, according to First Fidelity Guarantee Lexington, KY. They provide account users the characteristics of a checking account along with some of the main advantages of a savings account, such as:
Interest: Just like with savings accounts, MMA account holders can receive interest on their remaining balances. Typically, the interest rate offered is higher than that of a conventional savings account. However, the interest rate is frequently variable, which implies that it changes as the state of the market changes.
Debit Cards: Some banks provide customers with a debit card that they can use to make deposits, withdrawals, and transfers at automated teller machines (ATMs).
Check Writing: In addition to using debit cards, customers might also be able to write checks against the balances of their accounts.
In order to start an MMA, banks frequently require a minimal initial deposit, and balances must be kept above a predetermined level while they are operational. In the event that the balance is below that minimum, banks may charge a service fee.
People who have short-term goals in mind and wish to earn more interest than they would with a savings account can consider money market accounts. So, for those putting money aside for a specific purchase, such as a trip, a car down payment, or for a rainy or emergency fund, an MMA might be a good solution. They are not designed for lengthy objectives like retirement.
These accounts also provide federal insurance protection. Accounts held at banks are insured by the Federal Deposit Insurance Corporation (FDIC) while those held at credit unions are insured by National Credit Union Administration (NCUA). The FDIC and NCUA cover certain types of accounts, including MMAs, up to $250,000 per depositor per bank. Multiple insurable accounts at the same bank (checking, savings, certificate of deposit) count toward the $250,000 insurance limit. Joint accounts are insured for $500,000.
To access the services of First Fidelity Guarantee, check out their website at firstfidelityguarantee.com/