Money Market FAQ
Considering a Money Market Account but have some questions? This Money Market FAQ page is designed to answer any and all questions you may have about Money Market Accounts and more!
What is a Money Market Account?
A Money Market Account is a Savings Account that typically offers higher interest rates than traditional Savings Accounts. Money Market Accounts are offered by banks and credit unions and may require a higher minimum balance to open and maintain. They often come with limited check-writing privileges and a limited number of transactions per month.
How Does a Money Market Account Work?
Money Market Accounts operate much like regular Savings Accounts. Clients can deposit funds into the account, which the financial institution then invests in low-risk, short-term securities such as government bonds, certificates of deposit (CDs), or Share Certificates if the account is with a credit union. Typically, the interest earned on these investments is distributed to the account holder every month. Both FDIC and NCUA insurance guarantee the safety and security of Money Market Accounts, making them a reliable option for saving money.
What Are Money Market Funds?
Money Market Funds are investment vehicles that invest in short-term, low-risk securities such as government bonds, credit union Share Certificates, and CDs. These are offered by investment companies and are not FDIC-insured, meaning they come with a higher level of risk than Money Market Accounts. Money Market Accounts typically offer higher returns than traditional Savings Accounts but may also require a higher minimum investment.
What is a Money Market Savings Account?
Money Market Funds are a type of investment product that channel funds into low-risk securities with short-term maturities, including government bonds, credit union Share Certificates, and CDs. These investment vehicles are managed by investment firms and do not carry FDIC or NCUA insurance, which makes them riskier than Money Market Accounts. While Money Market Accounts may necessitate a higher minimum investment, they typically provide better returns than standard Savings Accounts.
How to Open a Money Market Account?
Opening a Money Market Account with Prestige Community CU is easy! Simply click on the link to our online application and follow the prompts to apply. Alternatively, you can visit one of our branches in Dallas or McKinney, Texas, and speak with one of our representatives who can guide you through the process.
What is a Money Market Mutual Fund?
A Money Market Mutual Fund is a mutual fund category that focuses on investing in low-risk, short-term securities, including government bonds, credit union Share Certificates, and CDs. These funds are offered by investment firms and do not come with FDIC or NCUA insurance, implying that they carry a greater risk compared to Money Market Accounts. Typically, Money Market Mutual Funds provide higher returns than Money Market Accounts, but they may also necessitate a higher minimum investment.
Benefits of a Money Market Account with Prestige Community CU
At Prestige Community CU, we offer a variety of benefits to our members who open a Money Market Account with us. Some of these benefits include:
Competitive interest rates: Our Money Market Accounts offer higher interest rates than traditional Savings Accounts, helping you earn more on your money.
Flexibility: You can access your funds at any time, making it a great option for both short-term and long-term savings goals.
Convenience: Our Online Banking platform makes it easy to manage your Money Market Account from anywhere, at any time.
Safety and security: Our Money Market Accounts are NCUA-insured, providing a safe and secure place to save your money.
Frequently Asked Questions
Q: What is the minimum balance required to open a Money Market Account with Prestige Community CU?
A: The minimum balance required to open a Money Market Account with Prestige Community CU is $2,500.
Q: How many transactions can I make per month with a Money Market Account?
A: Federal regulations limit the number of transactions that can be made with a Money Market Account to six per month.
Q: Can I write checks with a Money Market Account?
A: Yes, Money Market Accounts typically come with a check-writing limit.
We encourage you to consider our Money Market Account for its high-yield dividends that grow your account balance better than a traditional Savings Account.