An MMA can fit into any personal wealth savings plan, but it’s more open-ended and flexible than a retirement or college savings account.
Here are five main benefits to Money Market Accounts.
1. FDIC Insured
Money Market Accounts are FDIC insured up to insurance limits†. This is a big advantage for MMAs as compared to a brokerage account or money market fund where your deposited money is at risk from market fluctuations.
2. Higher Interest Rates and Compound Interest
In addition to being FDIC insured, Huntington’s Money Market Accounts typically earn a higher interest rate than our other deposit savings accounts. Huntington Money Market Accounts earn interest that is calculated daily and compounded and applied monthly. This means the interest you earn is added to your balance, then during the next month, you earn interest on your new balance. Understanding compound interest can be difficult, but, in short, it’s how your money works for you. You can use a savings calculator to help figure out how much you’re earning through interest.
3. Liquid Savings
Liquidity is one of the biggest advantages of an MMA. Liquidity, in a financial sense, means the degree to which an asset can be converted to cash. MMAs provide a high degree of liquidity which makes them good for long-term savings, emergency savings, or a future large purchase. MMAs are classified as savings accounts, and as such, regulations limit the number of transfers that can be made from Money Market Accounts during the calendar month or statement cycle.
You have access to your cash through ATM’s, in-branch teller services, and check-writing privileges. Since you can add or withdraw money at any time, Money Market Accounts are especially useful when you have maxed-out your IRA or 401K contributions. There are no annual contribution limits with an MMA.
4. Online and Mobile Banking
You can access your MMA balance through online or mobile banking. All you need is a connected device and you can check balances, pay bills, transfer money, view accounts, and more. That’s banking convenience at your fingertips.
5. Digital Savings Tools
Huntington's digital savings tools can help you save money and track your progress along the way. Set financials goals with Savings Goal Getter℠, a tool that can help you save for both big or small financial goals.