How to know if a money market account is right for you

You've worked hard to build your savings. Maybe you've been setting aside money for emergencies, a future home project or simply the peace of mind that comes from having a financial cushion.

At some point, you may start wondering: Should my savings be doing a little more?

That's where a money market account might come in.

A money market account could be a smart option when you've built up savings and want the opportunity to earn more while still keeping your money within reach. But like any savings tool, it's not the perfect fit for every situation.

Let's walk through what a money market account is, who it's best for and a few signs it might make sense for your savings goals.

What is a money market account?

Think of a money market account as a middle ground between a traditional savings account and a long-term savings option like a term-share certificate.

Like a savings account, your money stays accessible if you need it.

Like a certificate, it may offer the opportunity to earn more on larger balances. You typically start reaping the benefits of a money market account once you’ve saved at least $2,500.

In simple terms:

• Your money earns dividends (the credit union version of interest).
• You can keep making deposits any time in person, through payroll deduction or by account transfers.
• You can access your funds if needed.
• Your money remains federally insured.

Compare Dupaco's money market accounts >

How's a money market account different from a savings account?

A traditional savings account is often a great place to start building savings, while a money market account might make more sense once you've accumulated a larger balance and want that money working a little harder for you.

A traditional savings account may be best if:

• You're just starting to save.
• You're building an emergency fund gradually.
• You want a simple place to keep smaller balances.

A money market account may be best if:

• You've built a larger savings balance.
• You want the opportunity to earn more on eligible balances.
• You still want access to your money.

5 signs a money market may be a fit

|1| Your savings balance has grown

First off, congrats!

Many people start with a regular savings account. As that balance grows, it might be worth exploring whether another account could help you earn more on money you're already saving.

If you've accumulated thousands in savings, it may be time to compare your options.

|2| You're saving for something, but the timing isn't quite set

Maybe you're planning for:

• Home improvements
• Vehicle purchase
• A wedding
• A career change
• Larger emergency fund

You know you'll need the money eventually.

You just don't know exactly when.

A money market account could offer flexibility while allowing your savings to keep growing.

|3| You want access to your money

Unlike a term-share certificate, which requires you to leave funds untouched for a set period, a money market account lets you access your money when needed.

Life doesn't always stick to a schedule.

That's why many savers appreciate having a balance between earning potential and flexibility.

|4| You're between savings decisions

Maybe a certificate is about to mature.

Maybe you've received a tax refund, inheritance or other lump sum.

Maybe you're deciding what to do with cash that's currently sitting in a low-earning account.

A money market account could be a useful place to park funds while you evaluate your next move.

|5| You value peace of mind

When it comes to savings, earning more matters. But so does feeling confident your money is protected.

Money market accounts are federally insured, helping protect eligible deposits.

When a money market might not be the best fit

Let's be honest: No financial product is right for everyone.

A money market account may not make sense if:

• You're still building your first savings cushion.
• You need to access the money frequently for everyday spending.
• Your savings goals are better served by a different option.

The best savings strategy isn't about chasing the latest trend.

It's about choosing the account that matches your goals and comfort level.

A simple way to decide

Ask yourself these three questions:

• Do I already have money set aside?
• Do I want my savings to earn more while staying accessible?
• Am I saving for something that's months or years away rather than next week?

   

If you answered "yes" to most of those questions, a money market account could be worth a closer look.

Not quite there yet?

That's OK.

Every savings goal starts somewhere.

If you're still building your balance, consider creating a dedicated savings goal in Shine Online or Mobile Banking and setting up automatic transfers. Small, consistent contributions can add up over time!

The bottom line

It's about making sure the money you've worked hard to save is in an account that fits how you plan to use it.

Whether you're growing an emergency fund, saving for a future goal or deciding where to keep a larger balance, a money market account can be one option worth considering.

Compare Dupaco's money market accounts >