What is a Money Market? Is it right for me?
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You may have heard the term Money Market and wondered what exactly a Money Market account is. Ascend is here to help with just that.
What is a Money Market account?
- A specialized savings account
- Traditionally has a higher savings rate than that of a basic savings or checking account
- Requires an opening deposit of $2,500 or more to open an account
- Limited to six monthly withdrawals/transfers before incurring any penalties
- Offers more flexibility than a Certificate account
Is a Money Market account tied to the stock market?
No. Money Market accounts are not connected to the stock market. Your funds are as secure as they are with any of Ascend’s savings accounts. If fact, they are federally insured up to $250,000 by the National Credit Union Administration. So your funds are safe in a Money Market account and will not lose value whether there is a bull or bear market.
What’s the difference between Money Market and savings accounts?
The biggest difference between the two products is the Annual Percentage Yield or better known as the APY, which is the effective annual rate of return with compounding dividends. So a Money Market account will provide a larger return each year for you.
Another difference is transaction limits. Money Market accounts are limited to six withdrawals or transfers each month, while a savings account does not have a limitation on transactions.
What can a Money Market account be used for?
A Money Market account can be used for anything you would like to save for. Whether it’s a dream vacation, home improvements or emergency funds, a Money Market account can be used to save for anything.
What is the minimum to open an account?
Ascend Money Market accounts start at $2,500.
Is there a minimum balance?
No, but if your balance falls below $2,500 the Annual Percentage Yield will decrease.
Is there a limit to the number of transactions per month?
Yes. Federal regulations limit you to six withdrawals or transactions per monthly statement period. Any withdrawals or transactions above the limit of six will incur a $10 service fee for each transaction.