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By: Ikedi Ani-okoye

Money Market Accounts - Safety and Flexibility

Getting a money market account, from a credit union, is in some ways just like having a normal savings account. The only difference is that you are likely to get high returns from your money market account. This is especially true, if you are going to let the money sit in the account to grow. You will need high yield money market rates for this.

Some features of a money market account

When you are getting involved, in a money market account, you need to differentiate it from a normal savings account. Here are some things to look at:

High returns on interest

Most money market accounts, will restrict you in some way, usually telling you how much money you must have in the account, and how much you can take out. This means that they can give you a higher rate of interest.

Limits on your withdrawal

When withdrawing money, from a money account, the usual limit on the withdrawals is between three and six a month.

The insurance policy

All financial money market accounts, are insured by the federal government. This means that, in the history of these accounts, nobody has ever loss money. And increases your high yield money market rates.

Withdrawal fees

With many credit union money market account, there is no tiered interest, which means the more money you have in your account, doesn't increase the interest rate. But this also means that the is likely to be no early withdrawal fees. Which may be the case with a bank.

A money market account, sounds the same as a money market fund, but these are two different accounts. Just remember that the account is secure and the fund is not secure.