With so many types of bank accounts out there, it can be hard to understand the differences between them and the advantages they offer. Between savings accounts, checking accounts, bonds, certificates of deposit, money market accounts and more, how can you decide which ones are right for you? Sometimes it feels easier to stick with the simple account types you know -- even when other accounts may provide more value and meet your needs better.
Keep reading to learn more about how money market accounts work and their benefits, so you can decide whether our Premier Money Market Account is right for you.
1. Higher Interest Rates
A money market account is a type of savings account, but with a major added benefit -- you can typically earn higher interest than you can with a traditional savings account.
Most of us know that traditional savings accounts have offered low interest rates in recent years. So, if your goal is to grow your money while saving at the same time, some types of savings or checking accounts may not help you do anything more than keep your current money safe. In other words, you likely won’t be earning any interest on the money in that account.
Money market accounts, however, are a low-risk way to grow your money a bit more while still keeping it completely safe.
Let’s take a look at money market accounts compared to traditional savings accounts. According to the FDIC, the average interest rate for a traditional savings account is currently 0.39% as of April 2023.
An Armed Forces Bank Premier Money Market Account currently offers a 3.56% APY for 6 months as of April 2023.* This means you’ll make more than 3% more on your savings in our money market account than you would in an average savings account.
2. Easy Access to Your Funds
The flexibility of a money market account is another reason it can be a great choice. If you're unfamiliar with money market accounts, you can think of them as a cross between regular savings accounts and checking accounts. Money market accounts can be the ideal option for some people, as they can provide the “best of both worlds.”
Most money market accounts provide consumers with the option to transfer funds between accounts, make withdrawals, write checks, and more. With all of these services, money market accounts could be the perfect type of account for those who want to grow their savings but still have access to their money when they need it.
And whether you want to bank online or in person, you can manage your money market account in whichever way works best for you.
3. ATM Withdrawals
Being able to make ATM withdrawals as needed is a big benefit of money market accounts. While some types of accounts -- and even some money market accounts -- can have monthly withdrawal limits, that’s not the case for Armed Forces Bank Premier Money Market Accounts.
With a money market account from AFB, you’ll get unlimited ATM and in-branch withdrawals. Which means you’re in control of your funds.
4. Keep Your Money Safe
As long as your money is held at an FDIC-insured financial institution, a money market account is a low-risk way to grow your money in the account.
The FDIC, or Federal Deposit Insurance Corporation, provides insurance for deposits up to $250,000. This means that, as long as you have less than $250,000 in the money market account, you’d be reimbursed if anything were to happen to your bank.
Although the interest rate is higher than with other types of savings accounts, the rate may not be as high as you like. However, that is the trade-off for keeping your money safe. While other investment options such as the stock market may be able to offer higher rates of return, your money isn’t guaranteed to be safe like it is in a money market account.
About Armed Forces Bank Premier Money Market Accounts
Power up your savings with a Premier Money Market Account from Armed Forces Bank and get an introductory rate for six months with a minimum deposit of $10,000*. Enjoy easy access to your cash when you need it at great rates. Now that's peace of mind.
Our Premier Money Market is designed to be the best money market account for military members and their families, helping you keep your money safe while also allowing you to benefit from extra features.
- Unlimited ATM and in-branch withdrawals
- Can be used to invest your IRA or ESA
- Eligible for Saving Cents - round up your debit card purchases automatically and put the change in your savings account
- Source of overdraft protection
You also need to know:
- A $25 minimum opening deposit is required.
- There’s no monthly service charge when you maintain a minimum balance of $1,000 per monthly statement cycle. Otherwise, a $10 monthly service charge applies.
- 6 transactions per statement cycle allowed.
- Free e.Statements or $5 paper statements.
- Closing new accounts within 90 days of opening will result in a $20 early closure fee.
- Up to $100,000 ACH funding possible when opening online**
Armed Forces Bank Has Money Market Accounts and More
At Armed Forces Bank, we want to be your go-to bank for all your financial needs. And we are proud to offer our Premier Money Market Accounts with competitive interest rates, as well as other savings accounts and checking accounts, and more.
*Annual Percentage Yield (APY) is accurate as of 04/27/23. 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.
APYs are effective as of 4/27/2023. Balances $0.01-$9,999 APY = 1.06%. Balances $10,000-$24,999 APY = 1.16%. Balances $25,000-$49,999 APY = 1.26%. Balances $50,000-$99,999 APY = 1.36%. Balances $100,000-$249,999 APY = 1.51%. Balances $250,000+ APY = 1.81%.
The interest rate and annual percentage yield is subject to change daily. Interest begins to accrue no later than the business day we receive credit for the deposit of non-cash items (for example, checks). Interest will be compounded monthly and will be credited to the account monthly. If you use mobile banking to access your account, message and data rates charged by your mobile carrier may apply.
**. A $100,000 limit is in place for ACH transactions when funding a Premier Money Market account. No international transfers.
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.
Excessive withdrawal fee of $10 per item over 6 withdrawals per statement cycle.
FDIC-insured up to the maximum allowed by law