by Emily Hechler 
A Money Market is a special type of Savings account. The more money you contribute, the higher the dividends. However, these accounts aren’t ideal for everyone’s financial situation. Before applying for a Money Market, here are some questions to consider.
How much money am I putting in this account? A Money Market is ideal if you plan on saving a sum of money. Alltru’s Money Market requires a minimum balance of $250. If you are starting with less money, it is best to either move money from another account to reach the minimum balance or to open a different type of account. Once you reach certain thresholds in your account, your interest rate increases. This earns you more money as a reward for saving more money.
Will I need to access this money regularly? Some accounts restrict your access to the funds or charge you a large fee for doing so. Fortunately, the money in your Money Market is always accessible. You can access your funds through online and mobile banking or by visiting a branch. Since you can earn a higher return with a larger balance, many contribute to this account instead of withdrawing from it.
What’s the best way to use a Money Market account? This account is a great financial tool that you can use in diverse ways. Some people use this as their emergency fund and only use the money when necessary. Others use this account to supplement their retirement savings, since typical retirement accounts only allow accountholders to contribute a certain amount each year. No matter how you use the account, your account is Federally Insured by the NCUA up to $250,000.
Should I open a Money Market or a different type of Savings account? While Money Market accounts can be used in diverse ways, a different account could be a better option. If you plan on saving a large amount for an indefinite period, a Money Market is a great option. If you plan to move money into different accounts regularly, this might not be an ideal account. Keep in mind that you must maintain a $250 minimum balance to avoid a monthly fee.
If you still have trouble deciding whether a Money Market is the right account for you, make an appointment with Alltru. Our financial counselors can help answer your Money Market questions, evaluate your situation, and suggest which product will meet your needs. If you already know which account you want to open, start online or visit a branch to start.
