Paying attention to the way we spend and save money is important. That’s why opening a money market account is an appealing savings and passive investment option for many across the Pacific Northwest.
Money market accounts share some similarities with traditional checking and savings accounts while offering key differences that make sense for people who want to secure their financial futures. These accounts, often offered through community banks, include competitively high money market rates and easy access to funds.
Continue reading to learn more about the many benefits of opening a money market account. You’ll also discover how to grow your account, where you can monitor your money market account’s performance, when to open your account, and how to choose a financial institution to open your money market account with.
What Is a Money Market Account?
A money market account is a type of savings account that provides clients with a higher APY, or annual percentage yield, than other types of savings accounts. Money market accounts earn interest every month. These are deposited directly into the account, making money market accounts ideal for both short- and long-term savings goals, such as for home improvements, a wedding, or even retirement.
Another benefit of a money market account is that it blends the functionality of a checking account and a savings account by allowing withdrawals. At Riverview Bank clients can make up to six pre-authorized, automatic, or phone transfers every month, giving you access to the funds in your account while still maintaining a higher balance and earning compound interest daily. Funds can also be accessed using checks and debit cards linked to your money market account.
How Can I Grow My Money Market Account?
A money market account works by allowing clients to earn interest on the funds they deposit into their account. Interest is typically compounded daily and deposited monthly into the account, making it stronger and more robust every month. Money market accounts offer higher interest rates than regular savings accounts, creating a highly beneficial passive investment opportunity for clients.
With Riverview Bank’s tiered rate structure, your interest rate will increase as your balance increases. By setting funds aside every month and depositing them into your money market account, you’re not only earning interest on what was already in your account, but you’re also building on it with each deposit. A community bank’s money market rates tend to be more robust with strong growth and performance.
When Is the Best Time to Open a Money Market Account?
While there is no wrong time to open a money market account, having enough funds available to make your initial deposit is an important first step before opening your account. Money market accounts tend to have a higher minimum deposit requirement than other savings accounts. For example, at Riverview Bank, money market accounts require a minimum opening deposit of $2,500.
If you have your minimum opening deposit ready, opening your account is simple and direct. Your money market account can be opened by walking into any of Riverview Bank’s 18 branches and once opened can be monitored and maintained through online banking and the Riverview mobile banking app.
Who Should I Open My Money Market Account?
Both banks and credit unions offer products like money market accounts, so clients across the PNW have a lot of options for where to open their accounts. Before opening yours, investigate how or if the financial institution of your choice is insured and by whom it is insured. For example, Riverview Bank is insured by the FDIC, or Federal Deposit Insurance Corporation, an independent government agency that insures deposits and supervises financial institutions like Riverview to protect the funds and interests of clients and members.
Another factor to consider is how your money market account impacts your community. One of the benefits of a community bank, like Riverview, is knowing your investment directly benefits the people who live in your area. When you choose a financial institution with investment goals and community-focused initiatives that mirror your own, you can rest easy knowing you’re not only growing your own financial future but also helping your neighbors do the same.
For over 100 years Riverview Bank has been providing clients across Washington and Oregon with high-quality, community-focused banking products and services. As a community bank, our commitment to learning, adapting, and connecting with clients and citizens has earned Riverview a strong and respected reputation across the Pacific Northwest. Our commitment to honesty, transparency, and doing what’s best for our community sets us apart and has earned the business and loyalty of clients since 1923.
If you’re ready to learn more about the benefits of community banks and their money market rates, Riverview Bank, which has 4 branch locations in Oregon and 13 branches across southwest Washington, is here to guide you through the process and establish a relationship built on trust while you set and accomplish your savings goals.