- August 11, 2023
- Posted by General Electric Credit Union
- 3 read
Safeguard Your Finances with a Money Market Account
When it comes to saving, security is a top priority. Money Market accounts are often touted as a secure option for storing and growing funds. Use this guide for a better understanding of these accounts and why you can trust them to safeguard your hard-earned money.
Money Market accounts offer a high degree of liquidity, allowing savers like you to access funds quickly and easily. Most accounts provide check-writing privileges, debit cards, and Online Banking and mobile banking for account management.1 This access can be crucial, especially during unforeseen circumstances like a job loss or medical emergency. You’ll rest easy know you’re not only saving smarter but can also pull from your savings as needed.
- General Electric Credit Union (GECU) members can access their funds through a network of nearly 100,000 fee-free ATMs and ITMs.2
2. Advantages to saving more
After your initial deposit to open the account, you can continue adding to your balance to further leverage the benefits of compound interest. Deposit money at an interval that works for you, schedule automatic transfers from a checking account, or set up pay roll deductions so a portion of your paycheck goes toward savings. The bigger your balance, the bigger your return! With a Money Market account, you’ll be rewarded for your savings progress.
3. Low-risk earnings
Money Market accounts are sometimes confused with money market funds, but they are not the same thing. A money market fund is a type of mutual fund that invests in short-term vehicles like government securities. While they are a low-risk investment option, earnings aren’t guaranteed and there’s a chance you could lose the principal amount you invested.
A Money Market account is a savings account. It’s not in any way associated with investments, so you can earn dividends on your balance while protecting your principal. How often interest is compounded – daily, monthly, or yearly – differs from financial institution to financial institution. Before opening a Money Market account, verify how often the bank or credit union in question compounds interest on the account. The frequency will impact your overall return.
While money market funds and Money Market accounts are both fantastic ways to grow your money, it’s important to understand how they differ. This will help you make sound financial decisions that align with your risk tolerance and goals.
4. Deposit insurance
Always verify a credit union is a member of the National Credit Union Administration (NCUA) before funding an account. Under the NCUA, your funds are protected up to $250,000 per accountholder, per ownership category. Adding a joint owner to an account, including a Money Market account, may extend coverage. Learn more about this strategy, then schedule an in-branch appointment to discuss your account needs with a credit union team member.
Money Market accounts offer a secure savings opportunity for individuals seeking stability and low-risk returns. As a non-profit entity, GECU has members’ best interests in mind. That includes offering competitive Money Market rates to help you get ahead and reach savings goals, faster!