Businesses are looking for any and all means of making money during the COVID-19 pandemic. One great way is to make your money work for you. Money market accounts are a safe way to earn an extra few percentage points on your cash.
Money market accounts usually require a higher minimum balance upon opening than a regular savings account, and also a higher daily balance – but the interest rates are also higher, so you’re sure to benefit if you’ve got a larger balance.
Usually, with money market accounts, you can only make a few withdrawals a month depending on which bank or service you’re using – and most money market accounts only allow you to write 2-3 checks per month.
Understandably, in the current economic climate the interest rates are likely to fluctuate, so the figures given in this article are only accurate as of the time of 05/14/2020. For more in-depth info check out this article highlighting the best money market rates at Crediful.com.
AbleBanking
To open a money market account with AbleBanking, you must have a minimum opening balance of $250. This is considerably low for a money market account, as many require a minimum opening balance of at least $1500.
This is super accessible and ideal for those who are just starting out saving, as many alternative money market accounts require a much higher opening balance.
It’s easy to sign up and apply for an AbleBanking Money Market Account – as long as you have your social security number and another account to transfer to and from, then the application process should run pretty smoothly.
The APY is currently 1.4 for a standard money market account with AbleBanking, but this is likely to change over the next couple of weeks. Not long ago, the interest rates were 1.85%, so it should rise to this again when the economy begins to stabilize.
Like with many other money market accounts, you can only link your account to one external bank in the U.S, which limits your transfer options.
The transfer times, however, are relatively quick – only two to three days when you transfer to and from an external bank, which is quicker than the 5-10 day average with other banks.
When you invest your money in other places and organizations, there’s generally a risk of losing it – but money invested with AbleBanking is FDIC insured for your peace of mind.
Discover Bank
You may associate Discover Bank with their credit cards, but that’s not the only product they offer. The Discover Bank Money Market Account is a perfect choice if you’re looking to build your savings and accrue interest on a lump sum.
One of the drawing points to this Bank is the lack of account fees – for many other accounts, you have to pay a certain amount per month for their services, but Discover Bank is completely free.
You’ll get the best interest rate if you have a balance of $100,000 or higher (1.50% APY), but if you have less than that, you can still receive an interest rate of 1.45% APY.
Discover Bank is also accessible, with over 60,000 ATMs available for use all over the country. The mobile app makes tracking and managing your finances a lot easier – you can deposit checks, freeze your card, and check your up-to-date balances.
TIAA Bank
TIAA Bank is a great choice if you have $1,500 or more to deposit – as it’s a requirement for new customers. In the first year of joining, you receive a generous APY of 1.75%, but this is only if you have $250,000 or less.
When this year long introduction period is over, the APY you receive depends on the balance of your account.
Many banks can drop their APY without warning, but TIAA pledges to keep their APY in the top 5% of money market rates offered by its competitors, which is sure to ease any doubts and worries about APY fluctuation.
Like with Discover Bank, there’s plenty of ATM’s available for TIAA customers across the U.S. – and any non-TIAA Bank ATM Fee you may incur will be fully reimbursed when your balance is kept over $5000. This is a great money market account of choice if you’re going to want quick and easy access to your funds.
CIT Bank
CIT Bank may be the perfect bank for you if you don’t have a lump sum to start with but want to watch your savings grow.
The rates are extremely generous with this bank, especially considering you only need an opening balance of $100 to get started. It’s currently 1.85% APY, but again, this may be in flux for the foreseeable future due to the current financial climate.
There are fees with this bank– you’ll be charged for overdraft use, excessive transactions, wire transfers, and stop payments. This is pretty common with any bank account though, so don’t let that put you off.
The CIT encourages you to save, and their way of doing this is by limiting your withdrawals to 6 per statement cycle.
