What It’s Worth

What It’s Worth

4 Benefits of a Money Market Account

Author: Jesse Santana, SVP, Commercial Loan Officer
Published Date: 11/15/2018

Most financial advisers recommend setting aside three to six months' worth of expenses in an emergency fund. While you are probably familiar with checking and savings accounts, you might be seeking an account that can do more to help grow your savings while still providing easy access to your funds. If that’s the case, a money market account may be just what you need to accomplish that goal.

Following are a few key benefits of choosing a money market account as a safe place to park your funds.

  1. Your money is insured and secured

Unlike investments in stocks or bonds, funds in a money market account carry lower risk. If you open a money market account with an institution insured by the FDIC, like PlainsCapital Bank, you can rest easy knowing you will be protected.

The FDIC insures money market accounts up to the $250,000 limit per account, making them low-risk and reliable investments. All of the deposits and the interest that accrues in the account are 100 percent protected. In addition, the FDIC has a tremendous track record. Since its creation in 1933, not a single depositor has lost money in one of its insured financial institutions.

  1. Earn higher interest rates

One of the advantages of money market accounts is your ability to earn more on your investment than you would on a checking or savings account due to generally higher interest rates.

In addition, the interest rate for a money market account is tiered, compounded, and credited monthly. As a result, the account accrues a higher rate of return as more money is deposited. The tiered interest rates provide a unique opportunity for businesses to store excess capital resources.

  1. Funds are easy to access

Businesses often put funds aside for saving, with the intent of never making a withdrawal. However, urgent financial crises, a critical loss in revenue, or a multitude of other circumstances may require you to tap into those funds at a moment’s notice.

With no maturity date, one of the main benefits of a money market account is its liquidity. Withdrawing money from a money market account is a quick process. Account holders can easily access their accounts without penalty since it is not tied up the way it is in other types of accounts, such as CDs.

Money market accounts do come with transaction limitations, though, so it is important to check and understand the monthly limits associated with your account.

  1. You receive familiar account benefits

Not only do money market accounts earn higher dividends and allow for easy access to your funds, they also include the standard account perks you receive from a typical checking or savings account. Account holders can access their funds via checks, debit cards, ATMs, online banking, and mobile banking. And with PlainsCapital money market accounts, there are no fees for withdrawals at PlainsCapital Bank ATMs.

A money market account provides a mix of benefits. Think of it as the best parts of a savings account and a CD combined into one account. If you want to earn more for your business while maintaining easy access to your account, contact our experienced team at PlainsCapital at 866.762.8392 or visit plainscapital.com for more details on our money market accounts and rates.

Tags: Commercial Banking