Benefits of a Money Market Account
A money market account, also known as a money market deposit account or MMDA, is a type of interest-earning savings account offered by some banks, credit unions, and online financial institutions. Money market accounts provide many of the conveniences of a typical savings account but with a major added benefit — they often offer higher rates than traditional savings account or even high-yield savings accounts. Some financial instiutions set limits on how frequently you can withdraw funds from their money market accounts. However, money market accounts opened through SaveBetter do not currently have any withdrawal limits. So a money market account allows you to earn more interest on your savings while still having easy access to your funds when needed.
Tips for Using Money Market Accounts
Why settle for average rates when it comes to your savings? A traditional savings account may offer more interest than, say, a checking account. But savers can do much better extracting value from their cash reserves by opting for a higher-yielding savings product like a money market account.
What can you do with a money market account? Consider money market accounts for holding your emergency fund; savings for a major expense, like college tuition; or extra cash you don't need access to on a daily basis. By holding those reserves in a money market account, you're putting them to work. Click the button below to read more about how you can use a money market account to up your savings game.
Money Market Accounts vs. Traditional Savings Accounts
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More About Money Market Accounts
What Is a Money Market Account?
A money market account is a type of interest-earning savings account offered by some banks, credit unions, and online financial institutions. MMAs provide many of the conveniences of a typical savings account but with a major added benefit — they often offer higher rates than traditional savings accounts or even high-yield savings accounts (HYSAs).
A money market account (abbreviated as MMA) is often also called a money market deposit account (MMDA). The money market deposit accounts offered through SaveBetter are equivalent to money market accounts.
Money Market Account Rates
Money market account interest rates can be similar or just slightly less than those offered through certificates of deposit (CD), but MMAs are much more liquid; CDs require you to hold a set amount of savings untouched in an account to obtain their higher rates, but with MMAs, you can withdraw and deposit money at any time without penalty fees.
How Does a Money Market Account Work?
When choosing an account to park your hard-earned money, the decision often comes down to greater accessibility or earning a higher interest rate. But a money market account may strike just the right balance between both benefits. After opening the account, you can continue to deposit money into and withdraw money from a money market account, unlike the way a certificate of deposit works.
Can I Withdraw Money from a Money Market Account?
Withdrawals from money market accounts had been limited to six per month, but in April 2020 the Federal Reserve Board announced a new regulation allowing financial institutions to lift the cap on withdrawals on all savings accounts. This announcement was introduced due to the Covid-19 pandemic to make it easier for customers to access their savings in a time of financial need. A few months after the initial announcement, the Fed updated its Frequently Asked Questions on savings deposits to indicate that the Board does not have plans to re-impose transfer limits.
While banks and credit unions are not required to make these changes, money market accounts opened through SaveBetter do not have any withdrawal limits.
Find and Open Online Money Market Accounts, All Through the Convenience of SaveBetter
With SaveBetter’s unique online marketplace, you can compare and access an exclusive selection of federally insured money market accounts with competitive interest rates and flexible features, all with a single one-time registration, all in one portfolio.
The money market accounts offered through SaveBetter are a great alternative to the standard savings account you may get through a local brick-and-mortar bank, which in addition to offering a paltry interest rate may also put limits on the frequency of withdrawals. SaveBetter exclusively selects higher-earning savings accounts from its network of partner banks.
What Can a Money Market Account Be Used for?
A money market account allows you to earn more interest on your savings while still having easy access to your funds when needed. These features make MMAs great options for the following savings goals:
An emergency fund for unexpected costs, such as medical bills or car repairs
Major expenses, like a down payment for a new home or college tuition
Short-term wants and needs, like an upcoming vacation or new car purchase
Extra funds that you don’t need access to on a daily basis
How to Choose a Money Market Account
APY.
Annual percentage yield (APY) is one of the most important figures associated with a savings account because it dictates how much you’ll earn in interest on your money. The higher the rate, the more you’ll make over time. Unlike that of a CD, an MMA’s interest rate is variable; it may change based on overall market conditions. For example, if the Federal Reserve raises interest rates, then the rates banks offer on MMAs may increase as well. The reverse also is true.
Security.
MMAs are a type of deposit account, which means they are eligible for FDIC or NCUA insurance through financial institutions. FDIC insurance (covering banks) and NCUA insurance (covering credit unions) offers government-backed protection on your money, up to $250,000 per depositor, per insured institution. Ensure your funds will be covered by choosing a federally insured account.
Minimum deposit.
Different MMAs have different rules for the minimum amount required to open an account — varying from as little as $1 to as high as several thousand dollars. The money market deposit accounts available through SaveBetter can be opened with as little as $1.
Minimum balance.
If an MMA requires you to maintain a minimum balance — say, $1,000 — you may incur a fee if the amount in your account dips below that threshold. So, if you’d rather be able to access all of your money, be sure to look for an account that requires a low or no minimum balance. SaveBetter does not set a minimum balance for the money market accounts accessible through its platform.
Fees (or lack thereof).
Some financial institutions charge monthly maintenance fees, which can quickly eat into your savings. Make sure you understand any fees that are associated with an account — or choose one that doesn’t charge any. There are no fees to open or maintain a money market deposit account through SaveBetter.
Withdrawal limits.
MMAs are considered liquid, which means you can withdraw or transfer funds when needed, without penalty. Just keep in mind, some financial institutions may restrict your withdrawals to the six-per-month limit, despite recent changes in Fed rules. There are no such restrictions with a money market deposit account you get through SaveBetter.
Money Market Accounts Versus Other Deposit Accounts
What Is SaveBetter?
SaveBetter brings together high-yielding savings products offered by a network of U.S. financial institutions. It’s your destination to discover competitive savings products and start saving wisely. Select and fund multiple savings products from different institutions and manage them all from one account.
Safety
Funds deposited into any of the savings products available through SaveBetter are always held by a federally insured financial institution. A very easy and safe way to diversify your deposit portfolio. We use a host of cybersecurity measures to protect your funds and sensitive information.
Choice
Savings products from our network of financial institutions offer flexible terms and some of the most competitive interest rates. You can easily find the right product or mix of products for you.
Convenience
One account to hold all your deposit products. Simplified statements. Easy access to manage your funds – all through a streamlined digital platform.
How SaveBetter Protects Your Money and Personal Information
Federal Deposit Insurance Corporation
All participating banks are members of the FDIC. Deposits in participating banks are insured by the FDIC up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured bank, for each deposit account ownership category.
Click to learn more about FDIC insuranceNational Credit Union Administration
All participating credit unions are insured by the NCUA through its Share Insurance Fund. Deposits in participating credit unions are insured by the NCUA up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured credit union, for each deposit account ownership category.
Click to learn more about NCUA insuranceCybersecurity is a top priority at SaveBetter
We invest in a variety of technologies to protect our customer’s data, privacy and transactions. These include Multi-Factor authentication, encryption, and Cloudflare advanced internet protection and monitoring. We are a SOC 2 certified organization, which means we have met the requirements outlined by the American Institute of Certified Public Accountants (AICPA) to ensure that we have the controls in place to keep customers' data secure and private.
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Why SaveBetter Is, Well, Better
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FAQs
SaveBetter is a digital platform that gives savers unparalleled access to a variety of deposit products through the convenience of a single account, helping you unlock the growth potential of your cash savings.
SaveBetter customers use the platform to fund federally insured deposit products offered by numerous U.S. banks and credit unions with a wide range of maturities and APYs (annual percentage yield), allowing you to build a savings strategy to suit your earning and liquidity needs.
SaveBetter is not a bank. It provides the digital “storefront” where banks and credit unions can promote their deposit products.
SaveBetter is operated by SaveBetter LLC, a 100% subsidiary of Raisin GmbH, a trailblazer for open banking in the deposits and investments space. In the U.S., Raisin helps banks and credit unions improve their deposit funding by offering national reach for their retail deposit products, and provides savers with better access, more choice and higher convenience when evaluating savings products from FDIC insured banks and NCUA insured credit unions.
Your SaveBetter account gives you access to savings accounts and certificates of deposit offered by a variety of banks and credit unions with the security of federal deposit insurance. These products include:
High-yield Savings Account (HYSA). As its name indicates, this account type functions like a traditional savings account — with typically no restrictions on depositing and withdrawing funds — but earns interest (or dividends in the case of credit union savings products) at rates that are higher than the national average for standard savings accounts.
Money Market Deposit Account (MMDA). Also known as a money market account or MMA, this type of savings account offers a varying rate that allows you to earn interest (or dividends) on your funds with maximum flexibility for withdrawals. Like a HYSA, an MMDA offers features of a traditional savings account with typically higher returns.
No Penalty CD. Through the flexibility of a No Penalty CD, you can lock in a competitive rate for a fixed term with the option to make a full withdrawal at any time beginning seven (7) calendar days after funding without having to pay a penalty for the early termination.
Fixed Term CD. With this longstanding savings vehicle, funds are held for a fixed term, and a competitive APY (annual percentage yield) provides safe, predictable earnings. In contrast to No Penalty CDs, typically you are charged a fee if you do not complete the full term of the Fixed Term CD.
Interest (or dividend in the case of credit union savings products) is compounded daily and posted to your account monthly.
The short answer is yes!
For SaveBetter customers who hold savings products offered by one of our partner banks, funds are insured by the FDIC up to the maximum amount in accordance with and as permitted by law at each bank holding their funds. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per account ownership category. Ownership categories as defined by the FDIC include single bank accounts (owned by one person/depositor) and joint bank accounts (owned by two or more persons/depositors). Revocable trust accounts and some types of retirement accounts (e.g., IRAs) are among the other ownership categories covered by FDIC insurance. All deposits you have at a bank — whether made through SaveBetter or otherwise — count toward the deposit insurance limit. If funds held at a bank in a certain ownership category exceed the coverage limit, then the amount in excess of the limit will not be insured.
If you hold a savings product offered by one of our partner credit unions — making you a member of the institution — funds are insured by the NCUA through its Share Insurance Fund. According to the NCUA, each credit union member has at least $250,000 in total coverage. The Share Insurance Fund insures individual accounts up to $250,000. Additionally, a member’s interest in all joint accounts combined is insured up to $250,000.
At SaveBetter, cybersecurity is our priority. SaveBetter is a SOC 2 certified platform, meaning it has been validated by outside auditors across five (5) key information security principles. We also use a variety of measures to protect our customers' data, privacy and transactions, including:
• User authentication. The SaveBetter platform uses multi-factor authentication combined with leading authentication technology to validate our customers’ identities.
• Data encryption. Your personal information is encrypted in-transit and at rest using advanced cryptographic security algorithms.
• Site protection. Cloudflare™ advanced internet protection technologies are implemented to protect SaveBetter.com from malicious actors, botnets and denial of service attacks (DDOS).
• Monitoring. An always-on information security monitoring platform detects and alerts us to information security events.
• Assessments. Our platform undergoes vigorous security assessments and testing throughout the lifecycle of application development, from architecture planning to production phases.
Cloudflare™ is a registered trademark of Cloudflare, Inc.
A. Check out our savings marketplace and choose a product in which you would like to deposit money.
B. Create your username and password.
C. Complete an application and, after successful identity verification, link a bank account from which to fund your first savings product.
D. Start earning interest as soon as your money is received by the bank or credit union offering the savings product you selected.
Any questions or concerns? Email us at [email protected].
All deposits and withdrawals are completed within one to three (1-3) business days. After the initial deposit a withdrawals limitation for the first few business days may exist.
Business days are Monday through Friday excluding U.S. bank holidays.
For products offered by banks, all necessary registration is handled when you become a SaveBetter customer. One of the many benefits of our platform is that you can open a single account and earn competitive interest rates from banks in the SaveBetter network. When you select and fund a savings product offered by a credit union, there is an additional step of becoming a member. SaveBetter makes that process quick, easy and free. You still have one SaveBetter login and can view all your savings products in one convenient dashboard.
The current APY for your savings products can always be viewed on the Account Overview page when you are logged in to SaveBetter. This information also appears on monthly statements.
You cannot currently link your SaveBetter account to a third-party app, but we may offer this feature in the future. For now, you will not be able to link your selected savings product to a third-party app even if the bank or credit union offering that product does so outside of the SaveBetter platform.
The SaveBetter name and logo are trademarks of Raisin US LLC. The Raisin Solutions US name and logo are trademarks of Raisin GmbH, used with permission. All other trademarks, logos, marks, and brand names are the property of their respective owners - used with permission
© 2023 Raisin US LLC. All rights reserved.
APY means Annual Percentage Yield. APY is accurate as of {todayDate}. Interest rate may change after initial deposit. Minimum opening deposit is $1.00.
Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodian Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through SaveBetter.com. The Custodian Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered through SaveBetter.com. Central Bank of Kansas City, Member FDIC, d.b.a. Central Payments is the Service Bank. Lewis & Clark Bank is the Custodian Bank.