If you want to start saving for the future, a money market savings account can be a great way to do that. Money savings accounts are similar to a traditional savings account, but they allow you greater access to your savings. When you’re looking at investing in a money market savings account, you want to make sure that you’re getting the best rate available to add to your savings, especially if you’re depositing a large sum.
Like any other bank account, the terms can become complicated and difficult to understand in a hurry. Although money market accounts rarely offer interest rates over 1%, it’s important to get the best deal you can. Here are the 3 steps you can use to find the best rate for your money market savings account, without all of the complicated stuff.
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Decide your deposit amount
Once you know how much you want to deposit in your money market account, then you can look at how much difference the interest rate will make. For example, if you’re depositing $1,000, the difference between 0.8 and 0.85 is only $0.50. For $0.50, there are probably other aspects of the account that are more important, like the bank’s proximity. If you’re depositing $100,000, then you’re looking at a $500 difference, which would make the interest rate more important.
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Shop around
Call your local banks to find out what their current money market rates are. Make sure to ask for a rate based on how much you plan to deposit, some institutions may give you different rates based on the sum of your deposit. Check for any other rewards that they may offer. Boosted interest rates for certain time periods, for example, can really add up. Others may waive any monthly maintenance fees.
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Compare Online
Let’s say your local results were less than mind-blowing (some accounts only offer 0.35% interest). The next step is to look online. There are many reputable, insured banks that function solely online. Because they don’t have brick and mortar institutions, they can afford to offer clients the same perks of a brick and mortar bank with better interest rates and other benefits. For example, Ally Bank offers money market rates upwards of 0.80% and other online banks have offered over 1%.
Although it may seem like the difference between 0.3% and 0.5% isn’t that large, it can make a big difference in your account over time. It’s worth a bit of research to make sure that you get the best bargain for your savings.
