What is a money market account?
A money market account is a type of savings account that typically earns more interest than a regular savings account. They allow similar accessibility to savings accounts, with the added option of writing checks. There are usually more restrictions with money market accounts, such as minimum balances to maintain, specialized checks and different limitations to accessing funds in the account. The higher interest rate usually makes these restrictions worthwhile, depending upon your purposes and plans for the money. Most money markets held with a credit union or bank are insured via NCUA or FDIC.
Redwood Credit Union offers several types of money market accounts:
| Interest Rate | Min. Balance Required to Earn Interest |
Accessibility | |
| Money Market Growth | Typically, the lowest earning of the MMs | $100 |
ATM (possibility); |
| Balance Money Market | Typically, around the same rate as the Advantage Plus MM |
$2,500 |
ATM (possibility); |
| Advantage Plus Money Market | Typically, around the same rate as the Balance MM *added benefit of interest earned in corresponding Advantage Plus Checking |
$10,000 |
ATM (possibility); |
RCU occasionally offers promotional money market accounts with terms other than those outlined above. There are also money market options available in many investment plans that have different terms. The money market that you choose will depend on the amount of money you currently have in the account, what balance you intend to keep in the account, the interest rate range you prefer and whether you feel the need for the funds to be insured.
To find out more, visit our website, speak to one of our Member Service Representatives or make an appointment with an advisor in our Investment Services division to discuss your options.