![]() ![]() Money market mutual funds, on the other hand, are not FDIC-insured, so you potentially can lose money in those investments. Money market accounts are FDIC-insured, so you don't have to worry about losing money in one.Can you lose money in a money market account?.Note that money market mutual funds are a different product and are not covered by FDIC insurance. You're covered up to $250,000 per account. Yes, true money market deposit accounts carry the same FDIC insurance as CDs and savings accounts.If you don't write very many checks, for example, a money market account might be a viable alternative to a traditional checking account, with the added benefit of a high yield. You should care about high money market rates because it's always great to have additional options for parking your money.Why should I care about high money market rates?.Money market accounts carry FDIC insurance and usually pay higher yields than checking accounts, yet many still offer ATM and/or check-writing access. A money market account is a type of hybrid deposit account, combining elements of a savings account, a checking account and a CD.Here's a look at some of the most commonly asked questions regarding money market accounts. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.FAQs About Money Market Accounts Money market accounts aren't generally as well known as their deposit account cousins - checking and savings accounts. compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. ![]() Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. We may also receive compensation if you click on certain links posted on our site. We may receive compensation from our partners for placement of their products or services. While we are independent, the offers that appear on this site are from companies from which receives compensation. How to deposit or withdraw my moneyĪlthough savings accounts are designed to limit transactions, Discover offers several ways to access your money:į is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. The Quontic Bank Money Market account also comes with a 2% APY with no monthly fees and top-notch additional products like a savings account and CDs. If you’re looking for the highest APY on a money market account, look at the Ponce Bank High-Yield Money Market Deposit with 2.5% APY. However, digital banks keep overhead costs low and usually offers higher APYs and more perks than in-person banks can. Discover operates entirely online, so you won’t be able to visit a branch to speak with a teller. Like other savings accounts, you can only make six transactions per month. To open this account, you’ll need an initial deposit of at least $2,500. The Discover Money Market Account is a great way to grow your savings, but there are a few things you should watch out for: Because this account offers standard money market features, compare your options for a money market account before making a final choice on where to park your savings. The Discover also offers the checks, debit card and ATM access that you’d expect, and with no fees for maintenance, checks, insufficient funds and more. With the Quontic Bank Money Market, you’ll get even higher earnings of $5,000 x 2% for 12 months = $101. With the Discover Money Market account, you’ll earn $5,000 x 1.90% for 12 months = $80. That said, we’ve found accounts that can earn more than this one, such as the Quontic Bank Money Market account with 2% APY.įor example, if you open an Axos Bank High Yield Money Market account with $5,000, you’ll earn 0.25% x $5,000 x 12 months (compounded daily) = $12.52 in interest. Most money market accounts offer an APY around 0.14%, making this account’s interest much higher than the norm. You’ll earn a high 1.90% APY on balances under $100,000 and a slightly higher rate on balances above $100,000. Discover Money Market account is best for those planning to keep a high balance in their account, including depositing at least $2,500 at oppening.
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