Money Market Accounts: What They Are and How They Work

Are you ready to break free from the norm when it comes to your savings? Picture having a financial option that seamlessly merges flexibility, security, and growth potential. Step into the world of money market accounts – your ultimate destination for boosting your savings strategy.

With a money market account, you can enjoy the assurance that your funds are safe. And at the same time, you can maintain convenient access, no matter life's surprises. Whether you are preparing for a permanent change of station or saving for a rainy day, a money market account offers a dependable path to achieving your financial goals. Join us as we explore the key components of money market accounts and how they work, guiding you towards success on your financial journey.

What are Money Market Accounts?

A money market account is a type of deposit account offered at many banks and credit unions. Think of a money market account as a blend of savings and checking accounts, offering the perks of both. They're like the “Swiss Army knife” of banking – flexible enough to access your funds when needed, yet with some rules in place (thanks to federal transaction limits). These accounts let you earn interest at potentially higher rates than regular savings accounts, though they often require maintaining a higher minimum balance.

You can find money markets at brick-and-mortar banks, credit unions, military banks, or online. But when you’re ready to open an account, make sure to confirm that your financial institution is FDIC insured to guarantee the security of your funds. With FDIC insurance covering up to $250,000 per depositor, per account ownership type, your money remains safe regardless of where you choose to open your money market account.

If you are looking for a reliable way to grow your savings with the safety net of federal insurance, a money market account might be your perfect sidekick.

How Money Market Accounts Work

When you deposit money into a money market account, it starts earning interest right away. In fact, it typically has a higher interest rate than traditional savings accounts. And that interest is often tiered based on your account balance. The interest accrues daily, then is added to your account at the end of each month, giving your account balance a nice little boost.

What's great about money market accounts is that your money isn't locked away like with a certificate of deposit; you can access it whenever you need without facing withdrawal penalties. And just like a regular checking account, you can write checks or use a debit card to access your funds.

However, there's a limit to how many times you can withdraw money each month, usually around six times. And there are often minimum balance requirements. So, while your money is busy growing, it is also right there when life throws you a curveball and you need some extra cash.

Choosing the Best Money Market at Armed Forces Bank

Ready to kick your savings into gear? Armed Forces Bank's Premier Money Market¹ savings account offers the ideal blend of growth and liquidity. Access high interest rates without locking up your funds over time, so you will always have access to your money when you need it!

And take advantage of our six-month introductory rate of 4.15% Annual Percentage Yield (APY) when you deposit at least $10,000.³ It is the perfect way to jumpstart your savings mission.

Discover the perks of Armed Forces Bank's Premier Money Market Account:

• Source of overdraft protection on your Armed Forces Bank checking account
• Digital Banking with account alerts
• Free eStatements or $5 paper statements
• Saving Cents² enrollment
• Up to $100,000 ACH funding possible when opening online⁴
• Utilize funds to invest an Individual Retirement Account (IRA) or Education Savings Account (ESA)

Why choose average when you can have exceptional? Begin your savings mission today with an opening deposit of just a $25! Applying usually takes 10 minutes or less, so you can kickstart your journey towards financial success with ease.

Member FDIC

¹ A monthly service charge of $10 will be imposed every month or statement period if the balance in the account falls below $1,000 on any day of the month or statement period. Six (6) transactions per statement allowed. Excessive withdrawal fee of $10 per item over 6 withdrawals per statement cycle. Free eStatements or $5 paper statement monthly fee. Closing your account within 90 days of opening will result in a $20 early closure fee.

² Choose from $1 to $5 increment to round up on your debit card purchases from your checking account. Each night all the extra change will automatically transfer from your checking to your savings.

³ Annual Percentage Yield (APY) is accurate as of 4/29/2024. Promotional rate is effective for 6 months from the opening date of a new Premier Money Market account. To receive the introductory rate, account must be opened with a minimum of $10,000 or for existing Money Market accounts, a minimum additional deposit of $10,000 is required that cannot be transferred from an existing account. Maximum deposit eligible for promotional rate is $3,000,000. The rate may change after the account is opened. Fees charged to the account could reduce the earnings on the account. If the account is closed prior to the interest payment date, no interest will be paid.

⁴ A $100,000 limit is in place for ACH transactions when funding a Premier Money Market account. No international transfers.