Suppose you’re looking to diversify your investment portfolio between high-risk investments (such as the stock market or the cryptocurrency your brother-in-law talked you into) and lower-risk options such as certificates of deposits (CDs). In that case, it’s worth considering a Super Saver Money Market Account to balance out your portfolio.
As the name suggests, a Super Saver Money Market Account puts the emphasis on your savings. You’re likely to earn a higher interest rate than a regular savings account, and you can set up things like automatic deposits that allow you to keep adding money to the account easily.
A Super Saver Money Market Account helps you set savings goals that you can stick to by setting withdrawal limits. Of course, in an emergency, you are still able to withdraw your money, but penalties are likely to be applied.
What’s the Difference Between Money Market Funds and a Super Saver Money Market Account?
- Money market funds are a type of mutual fund investment. Money market accounts are bank products and are very similar to a regular savings account.
- Money market funds may not yield as high a return as investing in the stock market directly, but they carry much less risk and still tend to have better returns than an interest-bearing savings account.
- Money market accounts are backed by the National Credit Union Administration (NCUA) at a credit union or the Federal Deposit Insurance Corporation (FDIC) at a bank. This is important because if the financial institution becomes unstable, you won’t lose your original investment, giving you a safer savings option. Money market funds have no such NCUA/FDIC guarantee, but they are low risk.
- Money market accounts often have a higher minimum deposit or balance requirements than regular savings accounts—but they offer higher returns, more on a par with money market funds. The interest rates an account offers might vary, depending on the balance.
- Both types of money market products have high liquidity and accessibility, but money market funds can pay higher returns than money market accounts because their performance is tied to the stock market. The caveat here is that the environment needs to be stable for you to enjoy financial rewards in the longer term.
What Do You Need to Open a Super Saver Money Market Account?
To open a Super Saver Money Market Account, you will need to make the minimum required deposit and keep your account balance above a certain level. You will incur a monthly fee if the balance falls below the agreed minimum.
If you’re saving toward a longer-term goal such as for a down payment on a house or a vehicle, then a Super Saver Money Market Account can help you meet those goals.
Remember – you should have between 3 to 9 months’ worth of ‘rainy day’ money set aside in the event of an emergency. So again, a money market account can give you the flexibility and accessibility you need to build your rainy-day fund.
Super Saver Money Market Account
In summary, a Super Saver Money Market Account is very liquid, safe, and can provide higher earning potential so you can achieve your savings goals. You also have access to your funds and the security of NCUA backing.
Ideally, if you are in a financial position to diversify your portfolio, then a combination of both longer-term more aggressive growth combined with short-term low risk, low volatility, and high liquidity is a good plan.
Contact Us Today
Are you ready to take your savings up a notch? Then it’s time to switch to a Super Saver Money Market Account. At Members Trust, we offer a variety of investment and earning tiers. To view our Super Saver Money Market rates, click here.
At Members Trust, we are dedicated to the philosophy of “members helping members” in a professional and friendly environment. We are a full-service financial institution offering a wide array of products, including loans, savings, checking, online and mobile banking, and much more.
To find out how we can help you, contact us today or tour our website to find more information.