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If you’re saving your cash for a dream wedding, it pays to find the best bank account for it. Find out why a money market account could fit the bill.
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Wedding planning can be stressful. You’ve got to pick a date, hire vendors, and book a venue — it’s a lot to think about. And if you’re putting aside the cash to pay for it, you’ve also got to worry about where to keep that money as you’re saving, and how best to access it once you’ve reached your savings goal. The good news is that a money market account could be a perfect fit.
What’s a money market account? MMAs are less discussed than their more common siblings, the savings account and the checking account. They are, in fact, a sort of hybrid between the two. And they’re offered by many award-winning banks, to boot. Let’s take a closer look at some specific features of MMAs, and how they can make this type of account a great place for your wedding fund.
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You’ll earn interest
Money market accounts earn interest, which is their biggest point of commonality with a savings account. But unlike a savings account (which typically has no minimum deposit requirement), you may need to have a certain amount of money to open a money market account. In return, you’ll be granted the highest APY offered by the bank where you’re opening the account. And the best MMA rates right now are well over 4% APY. That means you get the opportunity to earn even more money on the money you have stored in one. And in these days of high inflation, it’s especially crucial that you protect your money from losing value.
Another thing MMAs have in common with savings accounts? The best rates are usually found at online-only banks, which can pass their savings on overhead costs onto customers in the form of higher APYs.
You’ll get easy access to your money
Now we’ve come to what MMAs share with checking accounts. One drawback of a savings account is often a lack of easy access to withdraw money. You won’t have to worry about how to tap an MMA account once it’s time to start paying those deposits to your vendors and wedding venue, though. Many MMAs come with a free debit card or checks. This means you won’t have to transfer money into a different account (like a checking account) to be able to access it. This will save you time and having to remember to move money before you need it.
Do note, however, that some MMAs may still have limits on the number of convenient transactions you can make in a given month. The Federal Reserve lifted the Regulation D rule (which formerly limited savings and money market accounts to six or fewer convenient transactions per month) in spring 2020, but it’s up to individual banks to determine their own rules. So check with your bank to see how often you can write checks or use a debit card with your MMA.
Your cash is protected
After several big-name bank failures so far in 2023, some people are understandably concerned about how safe their money is in a bank account. Thankfully, money market accounts fall under FDIC protection, as they are deposit accounts. This means that if your bank fails, up to $250,000 of your money kept in an MMA will be returned to you ($500,000 for joint accounts). It is crucial to check whether the bank you’re considering is insured. Hop on over to the FDIC’s BankFind Suite to look your bank up, or check the bank’s website (or give it a call to ask).
Getting to earn interest on your wedding cash, having easy access to it with checks or a debit card, and having the peace of mind that comes with FDIC insurance? For these reasons, a money market account is worth considering if you need a safe place to stash your wedding fund as you plan for the big day.
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