Money Market Savings Accounts: Pros and Cons

September 21, 2022

When looking for ways to maximize the money you’ve worked hard for, you should always make sure you’ve selected the best savings account for your short- and long-term goals. Though there are many options to choose from, one of the most popular is a money market account, which allows you to save safely while earning a competitive annual percentage yield (APY) and provides easy access your money for unexpected expenses.
 
However, as with any new account, it’s important you consider the pros and cons before signing on the dotted line. To help, we’ve compiled the following list to help you decide if a money market account is the best option for YOU.
 
Pros:

• Account rates are typically better than those of regular savings accounts, meaning you’ll watch your savings grow faster with a higher APY.
• Bank money market accounts are a safe place to stash your savings since they are insured by the Federal Deposit Insurance Corp. for up to $250,000. So, as long as your deposits are within this limit at a federally insured institution such as BayFirst, you can rest assured that your money is protected.
• Unlike with certificates of deposit (CD) accounts, you’ll be able to write checks from your account, which is especially helpful in case of an emergency. Most money market accounts allow for six free withdrawal or transfer transactions per monthly statement cycle.

Cons:

• Most financial institutions require a high minimum balance to open an account, though with BayFirst’s newest money market accounts, BayLive – which offers some of our best rates – there is only a $100 minimum to open.
• Rates for money market accounts are typically lower than some high-yield savings account.
• Some people prefer not having access to their savings to avoid impulse spending and ensure the highest possible ROI.

 
In short, if you’re looking for a place to put your cash that allows withdrawal options and provides a great rate, a money market account could be a solid option, provided you can meet the minimum balance and plan to leave most of your money in place to earn the most interest.
 
Part of managing your money properly is ensuring you have your funds in the right savings account, based on your financial goals. To help you decide if a money market account is right for you, start by comparing all types of savings accounts – including our BayLive Money Market Account offering our best rates, which grow with your balance. Click here to open today or contact us by filling out the form below to learn more.