Money Market Know-How

Money Market Know-How

What You Need To Know About Money Markets

While shopping for your first or forever home, you may have opted for a traditional savings account to stash your down-payment. This familiar account gives you flexibility to withdraw funds without penalty as well as make unlimited deposits, but it’s not the only one.

Money Market accounts are a great alternative, and here are a few reasons why:

They typically earn a higher yield than a traditional savings account.
These typically have a minimum balance requirement, but if you’re using it to save for a down payment on a home, car, or other big purchase, you may already meet the requirement (and then some!).

There are no penalties for withdrawing cash.
You won’t pay a penalty fee for withdrawing cash from your money market account, but similar to a traditional savings account, you may only make six electronic withdrawals from the account per month. But no worries, you can always visit a branch to make unlimited in-person withdrawals from your money market account.

There are no limits for making deposits.
Like a traditional savings account, you can deposit money into your money market account as often as you’d like.

They’re not risky.
You’ll never lose the principal balance, which is the amount deposited into the account.

You can set up automatic deposits into them.
Ask the credit union expert who is opening your money market account to set up automatic deposits into the account from a different deposit account, like your checking or savings.

They’re easy to set up.
Money markets are not a stock, mutual fund or similar type of investment, so opening one is no different from opening a traditional savings account. (FYI: You may be thinking of “money market funds,” which are investment funds.)

Funds are insured up to $250,000.
Up to $250,000 deposited into a Capital Credit Union money market account is insured. Like a regular savings account, you keep 100% of the funds you deposit into it as well as interest earned.

Information about Capital Credit Union’s money market account and rates can be found at www.capcu.org.

If you’re not planning to make a big purchase in the next couple of years and want a higher yield savings solution, certificates of deposit (CDs) may suit you well. With a CD, you agree that you won’t touch the money for a specified, usually longer, period of time, but they typically reward you with higher interest rates.

There is a myriad of CD terms and features out there, you just need to find one that will complement your savings plans. Start by taking a look at the types of CDs Capital Credit Union offers as well as terms and rates.

Or, speak with one of our experts today:

  • Bismarck and Mandan, 255.0042
  • Beulah, 873.2626
  • Hazen, 748.6868
  • Fargo, 282.2139
  • New Salem, 843.7504