Money Market Accounts vs. Checking Accounts
What exactly are the differences between Money Market Accounts vs. Checking Accounts for your personal banking needs? You may already have either one or both but still don't really understand the difference, well let us see what they are then. This way perhaps you can evaluate your current banking and revise it to a more profitable set of options individually. Whatever you do, the goal is to become better informed about Money Market Accounts vs. Checking Accounts.
Next let us look at interest rates for each account type. If you are using your money market account as an alternative to a savings account, then your money is probably earning interest at a lower interest rate. Chances are that you are not able to trade up for a higher yield and are set at the introductory interest rate you were given upon opening the account. There are higher interest rates available with many types of checking accounts; these will vary with the institution in rates, rules and requirements. In general a higher yielding interest rate from a checking account will earn more money in the long run. But compare for yourself and decide what is best suited to your banking needs.
Finally let us look at minimum balance requirements and deposit guidelines for each account type. In order to maintain the account status for each there maybe balance minimums that you must adhere to. Most all money market accounts include a regular amount of balance minimum usually monthly. There is a service charge if this is not maintained in most cases. Now depending upon what interest yielding your checking account offers, it may or may not have a minimum. The trick here is usually that no matter what your balance requirements, the higher your interest with the checking account is only made by maintaining a larger balance in the account. Keeping regular direct deposits or cash deposits coming into any money market account or checking account is essential to make the higher interest rate threshold. It may even be required. Either way regular automatic deposits is the surest way to the bigger interest rates and pay offs. Setting up a regular schedule of automatic transfers into any of these accounts is the best way to be assured that your balances will maintain steady growth.
These generally are true for money market accounts or checking accounts for all major banks nationally.
