Money Market Accounts:
Access, Insurance and a Great Rate!
While Certificates of Deposit (CDs) offer high returns, they require you to lock in your money for a set period of time (unless you choose to incur an early withdrawal penalty). As such, Money Market Accounts (MMAs) represent an attractive alternative for many people.
They too provide great returns—sometimes as much as twice the interest rates offered on regular savings accounts—but also offer the advantages of high liquidity and easy access to your funds. Since your money can be used without penalty whenever you need it, these accounts provide a degree of flexibility that CDs lack. In fact, many people use MMAs to temporarily “park” their cash in anticipation of upcoming purchases and expenditures. (Think cars, college tuition and vacations.)
What’s more, MMAs are low-risk products as compared to many other investment options. That’s because they are insured in full by the Federal Deposit Insurance Corporation (FDIC) up to $250,000, and by the Share Insurance Fund (SIF) for funds in excess of $250,000—so your whole deposit relationship is one-hundred-percent insured.
In short, you can “breathe easier” with an MMA—and there’s a lot to be said for having peace of mind!
Our Tiered Money Market Account
A specific type of MMA that has particular appeal for people with ever-increasing balances is our Tiered Money Market Account. In essence, this account pays you higher money market interest rates each time your balance grows to a pre-established, higher-valued tier. For example, if your balance reaches $10,000, your earned interest rate climbs from .10% APY to .75% APY. Similarly, if your balance reaches $35,000, your return increases to 1.25% APY. And if your balance grows to $75,000, your return climbs to 1.40% APY.
Coastal Heritage Bank’s Tiered Money Market Account makes a lot of sense for people who want a viable, practical alternative to low-interest savings accounts. Stop by a branch today to learn more.