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A Guide to How Money Market Accounts Work

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The right banking products can help you achieve your financial goals more quickly while building a financially sound future.

Money market accounts are a banking product that many Americans overlook, but these interest-bearing accounts can be a great match if you're looking to earn dividends while retaining easy access to your funds.

Here's why we recommend comparing money market rates in Florida and opening a money market account.

What's a Money Market Account?

A money market account is a hybrid product that combines features of both savings and checking accounts. These accounts allow your money to grow by paying out monthly dividends. However, withdrawals remain accessible.

While most money market accounts have a limit on the number of withdrawals you can make, you'll typically have a debit card for ATM withdrawals as well as a checkbook. If you exceed the number of monthly transactions allowed, your money will usually remain accessible if you're willing to pay an excess transaction fee.

Money market accounts are also insured through the FDIC, or NCUA if you decide to open one of these accounts with a credit union.

The Benefits of Opening a Money Market Account in Florida

To make your funds more accessible, financial institutions look for short-term investments with high liquidity. This approach often results in a higher return rate than traditional savings accounts, making money market accounts an advantageous option for growing your egg nest.

According to the FDIC, savings accounts have an average yield of 0.46%, while money market accounts typically yield 0.66%.

While the average rate for money market accounts is lower than most Certificates of Deposit, liquidity is a key benefit that can often make money market accounts a better fit than a CD. As a money market account holder, you can access your funds via an ATM or by writing a check. Benefits are also flexible, and you can contribute to your money market account freely as long as you meet any minimum balance requirements.

Money market accounts aren't a good fit for daily purchases due to the withdrawal limits. Still, they can be an excellent option for earning interest on your emergency fund, saving for shorter goals, or simply keeping your money accessible while it grows.

Money Market Rates in Florida and Other Important Considerations

Only 11% of Americans have a money market account, making these accounts some of the most underutilized saving products. Your first consideration in opening a money market account is whether the minimum deposit aligns with your financial capacity. If you have enough savings to meet the minimum requirement, a money market account could be for you.

Not all money market accounts are the same, of course, and features and fees can vary from one financial institution to another. Your first step should be to assess these common features:
  • Compare money market rates in Florida. The higher the rate, the faster your money will grow.
  • Can you maintain the minimum balance required on the account?
  • Find out more about withdrawal options. Most financial institutions offer checks and an ATM card on their money market accounts, but the number of monthly withdrawals allowed can vary.
  • Online banking features can be a plus for automating deposits into your money market account and tracking your balance.
  • Fees can vary from one financial institution to another. Money market accounts can have a monthly fee as well as an excess transaction fee if you make frequent withdrawals. Note that you can typically save on account fees by choosing a credit union over a traditional bank.
Open a Money Market Account With Power Financial Credit Union

A money market account can be a great fit if you want to grow your savings while retaining access to your funds. You should take the time to compare money market rates in Florida to locate the most advantageous banking products, find out more about minimum deposits, and compare other account features.

At Power Financial Credit Union, we offer flexible money market accounts to help you maximize your savings. With competitive rates based on your account balance, no monthly fees, and unlimited withdrawals, our money market accounts are a popular option for managing your savings. Get started today by comparing our money market account rates.