Put A Money Market Account To Work For You!
A great alternative to a standard CD, a money market account from Premier Credit Union is another way to boost your savings. You’ll see a larger annual percentage yield (APY) compared to a regular savings account. But the biggest difference you’ll see is liquidity – meaning you’ll have penalty-free access to your money instead of having it locked up, like with a certificate of deposit (CD). With Premier, you’ll have 6 free withdrawals each month, (minimum of $500) in the form of checking or ATM withdrawals, while the rest of your money earns interest! There are no monthly fees if you don’t go below the minimum deposit amount that qualifies you to open an account. As with all Premier Credit Union accounts, your deposits will be federally insured by the NCUA for up to $250,000.
What is a good interest rate for money market accounts?
This number can vary, because money market interest rates usually fall in the middle of a financial institution’s savings products. They will certainly be higher than a standard savings account, but tend to have lower interest rates vs CDs. Premier Credit Union has some of the best rates in the Des Moines, Ames, and Sioux City, Iowa areas. Visit our rates page to learn more! In addition to consumer accounts, Premier also offers money market accounts for our business member accounts.
Do you pay taxes on money market accounts?
Yes, the interest earned on a money market account is taxable. But the good news is that you are only taxed on the interest, not the entire account balance. It is counted as “earned income” when filing your taxes. Thankfully, you won’t have to keep track of what this amount is, especially if you are making withdrawals over the course of a year. Premier will send you a 1099-INT form each year with a summary of your account activity, and what amount is taxable.
What are the downsides to money market accounts?
We don’t really call them “downsides,” but as with all products and services, there are pros and cons associated with money market accounts. You just have to be conscious of your own specific financial situation, and what your intentions are. Again, at Premier there are no monthly fees if the minimum balance is maintained. This will could prove advantageous vs a Jumbo CD, which has a minimum deposit of $100,000. Liquidity can prove very helpful if you need access to your money, but keep in mind that for Premier, you will incur penalties if you go over the six monthly withdrawals.
Premier Credit Union has a range of savings products to help Make Life Better for you. Whether it is a CD, a Money Market Account, or our High-Yield Checking Account, we have great options to fit your financial situation. Talk to us today to get started on your savings journey!
About us:
Premier Credit Union is a full-service financial institution serving Central Iowa, with branch offices in downtown Des Moines, Urbandale, West Des Moines, Sioux City and Ames. At Premier, our mission and reason for existing is to Make Life Better for you, our member!
