If buying a home is on your list of plans for the future, one thing is for sure – you are going to have to be prepared with money for a down payment and other closing costs.
While you have several high-interest savings options to save for your future investments, money market accounts and rates might provide you with the level of flexibility and return you are looking for.
Here are five reasons a money market might be right for you.
1. Open-ended depositing
When you use a money market account as your high-yield savings choice, you are not limited to your initial deposit. As you continue to make money, you can continue putting some into the money market account. After you open your money market account, consider setting up regular, automatic transfers from your checking account into it. This will make saving for your future home even easier.
2. Money market rates
For every dollar invested in your money market account, a designated money market rate will be applied. So, not only will you have your money set aside in a safe place, you will be earning a decent interest rate on it as you go.
3. FDIC insurance
Money market accounts secured through banks covered by the FDIC offer protection of your funds should anything unexpected happen to the financial institution. So, as you are shopping for your high-interest savings account, it would be wise not only to ask about money market rates and fees but also about FDIC insurance.
4. Availability of funds
With money market accounts, you are allowed a certain number of withdrawals every month. (This differs from another high-yield savings account, a certificate of deposit, which doesn’t allow any withdrawals.) So, if a great deal on a house presents itself before you were expecting it, you will be able to utilize the money you have been saving to make the down payment.
5. Transferable use
If purchasing a home becomes less of a priority or an emergency presents itself, the money saved in your money market can be used for anything. You aren’t required to put the money towards a home.
Start preparing for your future now
If purchasing your first home or upgrading to a new one is part of your future plans, the time to start saving is now. Consider utilizing high-yield savings accounts, like money market accounts, to boost your savings potential. Either as a standalone savings option or as part of a high-interest savings portfolio, a money market account can help you get ahead.
Sponsored content was created and provided by RBS Citizens Financial Group.