For many savers, growing their account balance is a big priority.
But whats equally as important is the type of account you keep your savings in. High-yield savings accounts, certificates of deposit (CDs)and even money market accounts often come with higher than average APYs that help grow your balance more quickly over time.
One of the highest money market account rates available right now: CFG Banks high-yield money market account.
CFG Banks high-yield money market account
CFGs money market account currently offers a 5.02% APY, which is more than 8 times the national average of 0.57%. The APY for this account is a variable rate, meaning that your rate could change at any time at the banks discretion.
To get started, youll need to make an initial deposit of $1,000. This account charges a monthly $10 service fee, although account holders can waive the fee by maintaining a minimum daily balance of $1,000. You can make additional deposits to your account by ACH transfer, mobile deposit, or by visiting or mailing a deposit to one of CFGs Maryland branches.
Its important to note that this account does not include check-writing or debit card privileges, although you can wire money from your account to an external bank account.
The daily external outbound transfer limit for the CFG High Yield Money Market Account is $5,000. The daily inbound transfer limit is $25,000. Your total external transfers both inbound and outbound cannot exceed $30,000 in a 30-day rolling period.
How does a money market account work?
Think of a money market account like a hybrid version of a checking and savings account. With a money market account, you can take advantage of a higher APY, similar to those offered by many high-yield savings accounts.
And, similar to a traditional checking account, many MMAs offer check writing privileges, debit card access, and the ability to make withdrawals and deposits via ATM. Although, there may be a limit on how many withdrawals and deposits you can make per month. Its also common for money market accounts to require a higher opening balance to get started in order to secure the most competitive interest rates.
What to look for in a money market account
Not all money market accounts are built the same. Minimum opening deposits, transfer limits, fees, and account features will vary depending on your financial institution. When selecting a money market account for your savings, consider the following:
- How will you access your money? Many MMAs offer debit cards and check-writing privileges, but this isnt the case for all MMAs. If youre looking for a savings vehicle with a high APY and liquidity, you may want to opt for an MMA that provides easy access to your funds through one or both of these options.
- What kinds of fees will you be responsible for? Many MMAs are fee-free or offer ways to waive monthly fees by meeting certain requirements. Selecting an account with low fees or no fees at all will save you money in the long run.
- Does your MMA have any withdrawal limits? Banks and credit unions are no longer required to limit withdrawals to six per month, but some may still set their own limits. Ask your financial institution if there are any limitations on how often you can withdraw funds and then consider whether that limit aligns with your spending habits.
The takeaway
If youre hoping to grow your savings without sacrificing access to your funds, a money market can offer all of the best features of a high-yield deposit account and an accessible, everyday checking account.
