If you’re looking to build your savings without locking up your funds, a money market account could be an excellent option for you. Money market accounts are a dynamic, convenient savings tool featuring higher rates than traditional savings accounts, the ability to contribute money over time, and the flexibility to access your money to cover unexpected expenses. Let’s explore how to set your savings goals, when to start, and how much you need so you can begin to build savings with a money market account.
Like anything in life, identifying a goal gives you a target to work toward. Determining what you’re saving for with your money market account can help you find the motivation to build savings and achieve goals quicker.
With higher interest rates than traditional savings accounts and the flexibility to access your funds surcharge-free up to six times per month, money market accounts may be best suited for your mid-term savings goals. These types of goals can take anywhere from one to five years to reach and can include:
While money market accounts allow some access to funds so you can cover the costs of unexpected expenses and emergencies, they’re not designed to replace a checking account, so you shouldn’t plan to withdraw money market funds daily. This planning will allow you to maximize your earnings while avoiding transaction fees.
In general, the sooner you begin saving, the better because it gives your money more time to grow and earn interest. Of course, you’re going to want to have enough money in a checking account to cover your everyday expenses. Then, you can begin to build savings in a money market account. This strategy allows the cash in your money market to stay put, accumulate (higher) interest, and grow.
Minimum opening balance requirements for money market accounts vary depending on the financial institution. With BrioDirect’s High-Yield Money Market Account, all you need is $100 to open your account.
However, many money market accounts have higher minimums to open, which can delay your ability to start saving. When that’s the case, you can start by keeping your money in a traditional savings account. Then, once you have enough money saved, you can open and move the money into a money market account.
But why wait? Look for a money market account like BrioDirect’s that gives you both high yields and low opening balances.
Money market accounts typically earn more interest than traditional savings accounts, making them a great tool to build savings. In addition to better rates, many financial institutions offer tiered rates, where your interest rate increases as you meet and maintain certain balance thresholds—an added incentive to grow your balance and earn more on your money.
At BrioDirect, it’s easy to start saving with a High-Yield Money Market Account, featuring:
Ready to get started? You can open a BrioDirect High-Yield Money Market account online in minutes. All you need is your contact information, social security number, and either your driver’s license, passport, or state-issued identification. Learn more or open your account online now.
All deposit products are provided by Webster Bank, N.A. ("Webster Bank"), an insured FDIC institution. BrioDirect is a sub-brand of Webster Bank. Webster Bank operates under the trade name BrioDirect. This trade name is used by, and refers to, Webster Bank, a single FDIC-insured bank.
Accounts that are opened via www.briodirectbanking.com and marketed by BrioDirect are Webster Bank accounts. Deposits in these accounts are made with Webster Bank. For purposes of determining how much FDIC insurance is applicable to your accounts, you need to consider not only the BrioDirect online savings, CD, or checking accounts that you maintain, but also all other accounts you maintain at Webster Bank.