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A Money Market Account (MMA) might be the right choice for you if you’re looking to earn interest while having access to your funds.
An MMA can fit into any personal wealth savings plan, but it’s more open-ended and flexible than a retirement or college savings account.
Here are five main benefits to Money Market Accounts.
1. FDIC Insured
Money Market Accounts are FDIC insured up to insurance limits†. This is a big advantage for MMAs as compared to a brokerage account or money market fund where your deposited money is at risk from market fluctuations.
2. Higher Interest Rates and Compound Interest
In addition to being FDIC insured, Huntington’s Money Market Accounts typically earn a higher interest rate than our other deposit savings accounts. Huntington Money Market Accounts earn interest that is calculated daily and compounded and applied monthly. This means the interest you earn is added to your balance, then during the next month, you earn interest on your new balance. Understanding compound interest can be difficult, but, in short, it’s how your money works for you. You can use a savings calculator to help figure out how much you’re earning through interest.
3. Liquid Savings
Liquidity is one of the biggest advantages of an MMA. Liquidity, in a financial sense, means the degree to which an asset can be converted to cash. MMAs provide a high degree of liquidity which makes them good for long-term savings, emergency savings, or a future large purchase. MMAs are classified as savings accounts, and as such, regulations limit the number of transfers that can be made from Money Market Accounts during the calendar month or statement cycle.
You have access to your cash through ATM’s, in-branch teller services, and check-writing privileges. Since you can add or withdraw money at any time, Money Market Accounts are especially useful when you have maxed-out your IRA or 401K contributions. There are no annual contribution limits with an MMA.
4. Online and Mobile Banking
You can access your MMA balance through online or mobile banking. All you need is a connected device and you can check balances, pay bills, transfer money, view accounts, and more. That’s banking convenience at your fingertips.
5. Digital Savings Tools
Huntington's digital savings tools can help you save money and track your progress along the way. Set financials goals with Savings Goal Getter℠, a tool that can help you save for both big or small financial goals.
Money Market Account
Earn Higher Interest on Your Savings Goals
A Money Market Account can help add value to your current personal wealth savings plan. Grow your savings to reach your long-term goals, budget for quarterly payments, fund a child’s tuition and more.
There are many ways you can use your MMA to benefit your lifestyle such as building an emergency fund, budgeting for quarterly payments, saving for college, and much more. MMAs, CDs, deposit savings accounts, brokerage accounts, and retirement savings accounts all play a role in a wealth-building portfolio, and MMAs provide a combination of liquidity and access wrapped up with the security of being FDIC insured.
† Federal Deposit Insurance Corporation. “Insured or Not Insured?” Accessed December 2020.
Savings Goal Getter℠ is a service mark of Huntington Bancshares Incorporated.
The information provided in this document is intended solely for general informational purposes and is provided with the understanding that neither Huntington, its affiliates nor any other party is engaging in rendering financial, legal, technical or other professional advice or services, or endorsing any third-party product or service. Any use of this information should be done only in consultation with a qualified and licensed professional who can take into account all relevant factors and desired outcomes in the context of the facts surrounding your particular circ*mstances. The information in this document was developed with reasonable care and attention. However, it is possible that some of the information is incomplete, incorrect, or inapplicable to particular circ*mstances or conditions. NEITHER HUNTINGTON NOR ITS AFFILIATES SHALL HAVE LIABILITY FOR ANY DAMAGES, LOSSES, COSTS OR EXPENSES (DIRECT, CONSEQUENTIAL, SPECIAL, INDIRECT OR OTHERWISE) RESULTING FROM USING, RELYING ON OR ACTING UPON INFORMATION IN THIS DOCUMENT EVEN IF HUNTINGTON AND/OR ITS AFFILIATES HAVE BEEN ADVISED OF OR FORESEEN THE POSSIBILITY OF SUCH DAMAGES, LOSSES, COSTS OR EXPENSES.
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Money Market Accounts (MMAs) are a versatile tool for individuals seeking to grow their wealth while maintaining accessibility to their funds. Let's dive into the concepts covered in the article to illustrate the expertise:
FDIC Insurance
The Federal Deposit Insurance Corporation (FDIC) insures Money Market Accounts up to specific limits, ensuring protection for deposited funds. This protection is a fundamental advantage over investment options like brokerage accounts or money market funds, shielding deposited money from market fluctuations.
Higher Interest Rates and Compound Interest
MMAs typically offer higher interest rates compared to standard deposit savings accounts. The interest earned is compounded and applied monthly. Understanding compound interest is crucial; it's the mechanism through which your money grows exponentially over time. This is an advantageous factor for individuals seeking to maximize the growth potential of their savings.
Liquidity
Liquidity denotes the ease with which an asset can be converted into cash. MMAs offer high liquidity, making them suitable for various purposes such as long-term savings, emergency funds, or large future purchases. They allow for easy access to cash through various channels like ATMs, in-branch services, and check-writing privileges.
Online and Mobile Banking
Accessibility is key. MMAs offer the convenience of online and mobile banking, enabling users to monitor balances, pay bills, transfer funds, and perform various transactions with ease using connected devices.
Digital Savings Tools
Innovative tools like Savings Goal Getter℠ aid in setting and tracking financial goals, a valuable feature for individuals using MMAs for specific objectives such as building an emergency fund, saving for education, or budgeting for periodic expenses.
Application in Wealth-Building Portfolios
MMAs serve as a valuable component within a comprehensive wealth-building portfolio, providing a balance of liquidity and access while benefiting from FDIC insurance coverage.
The comprehensive understanding of these concepts showcases the versatility and advantages of Money Market Accounts in wealth management strategies, catering to various financial goals and offering a secure avenue for saving and growing funds.
