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A savings option you might be overlooking: Money market accounts

Savings are a critical part of any financial plan, whether you’re looking to reach your first $1,000 or already have a significant rainy-day fund stashed away. If you already have a good amount saved, a money market account may be able to help you maximize your savings goals.






What is a money market account?

Money market accounts can offer higher interest rates on balances, which means the money you put away may earn more over time than it would in a standard savings account. It’s important to know that a money market account may require a larger balance to obtain a higher interest rate or annual percentage yield. There are no limits on how much you can deposit into a money market, but there are some restrictions to how you can access the account and you should be aware of the FDIC insurance limit of $250,000.

Accessing your money market funds

Each month, you have up to six opportunities to make withdrawals and transfers from a money market. You can make these transactions from checks or an account-connected debit card, as well as via online banking, depending on your financial institution.

Money market vs. time deposit accounts

Understanding the difference between money market accounts and time deposit (TD) accounts is all about access. TD accounts lock up your savings for a set amount of time—anywhere from one month to six years at some institutions—with charges if you need to remove your money early. However, even though you have less access to the money, TD accounts can provide competitive interest rates to help you grow your balance.

In comparison, you have access flexibility with a money market account, so you can withdrawal your cash if you need it (generally up to six withdrawals each month), while still taking advantage of a higher interest rate opportunity. A money market account is an ideal account for those who want to boost savings while still being able to use their funds.

Comparison snapshot

* Time deposit: funds locked in for a set period, competitive interest rates

* Money market account: limited access to funds during the month, competitive interest rates

Is a money market right for me?

Money market deposit accounts are best suited to those who have funds ready to deposit ($100+) and are looking for a:

  • Safe, FDIC-insured way to deposit savings funds (FDIC insurance limit of $250,000)
  • Competitive interest rates to help your money grow
  • Access to savings funds (although there are some limits)
  • Convenient check or debit features

A money market account has features that make it accessible and convenient while growing your funds through a competitive interest rate. Shop around to compare specific money market interest rates and features to make sure the account you choose is right for you and your financial goals. And, regardless of the account type you choose, know that you are on the right track to financial stability if you consistently save money for the future.

UMB personal banking solutions offer convenience and simplicity to meet all of your past, present and future financial needs. From home loans to money market accounts and everything in between, see how UMB personal banking can work with you to find the right products for your life and lifestyle.graphic line break

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When you click links marked with the “‡” symbol, you will leave UMB’s Web site and go to Web sites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other Web sites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.