How to Grow Your Savings With a Money Market Account
If you're earning next to nothing on your savings account, a money market account (MMA) could be a smart upgrade. It offers higher yields while keeping your money accessible.
What Is a Money Market Account?
A money market account is a type of savings account that typically offers higher interest rates in exchange for a higher minimum balance. Like a regular savings account, it's NCUA-insured at credit unions (up to $250,000), so your money is safe.
How It Differs From a Regular Savings Account
- Higher interest rates: MMAs generally earn more than standard savings accounts.
- Higher minimum balance: Most require a minimum deposit of $1,000-$2,500 or more.
- Check-writing ability: Some MMAs allow limited check-writing or debit card access, making them more flexible than standard savings.
Who Should Consider a Money Market Account?
An MMA is ideal if you:
- Have a lump sum to deposit (emergency fund, bonus, inheritance)
- Want better returns than a regular savings account
- Need occasional access to the funds (but not daily spending)
- Want the security of NCUA insurance
Money Market vs. CDs
Unlike Certificates of Deposit (CDs), which lock your money for a set term, money market accounts let you withdraw funds when needed. However, CDs may offer even higher rates if you can commit to leaving the money untouched for 6-60 months.
Tips for Maximizing Your MMA
- Compare rates across institutions—credit unions often offer the best money market rates.
- Maintain the minimum balance to avoid fees.
- Use it for your emergency fund to earn better returns while keeping money accessible.
BrightStar Credit Union offers competitive money market rates. Check our current rates and see how much more your savings could be earning.
