Comedian Jimmy Kimmel said when it comes to taxes, there are
two types of people; those that get it done early, and then the rest of us.
If you happen to be finished with your taxes and also
anticipating a refund, you may want to continue your ambitious streak and think
about putting that refund in a money market account. You can actually grow your
money while having access to it should you need it.
That's because money market accounts (MMAs) are a type of flexible
deposit account that offer higher interest rates on your funds than a
traditional saving account. But unlike a certificate of deposit (CD), there are
no penalties for accessing your Money Market funds early. Plus, the interest
that you earn can be withdrawn once it's posted to your account!
A money market account is like a mix of a savings account
and a checking account. Like a checking account, money market accounts often
include ATM cards and/or check-writing abilities, depending on your bank or
credit union. However, money market accounts are not quite as flexible as
checking accounts. They do limit you to outgoing transactions, like withdrawals
and transfers, per statement cycle, just
like with a savings account. But that can be a good thing if your goal is to
only touch that money occasionally, if at all.
And the more your deposit into your money market account,
the more interest you may be eligible to earn. Some institutions may require a
larger first-time deposit. Others may require a smaller some, perhaps starting
around $1,000. In addition, there may also be a minimum balance requirement.
Money market accounts are a great vehicle to use for
pursuing both short-term and long-term savings goals. They allow you to
separate specific money from your everyday bank account to save for the future.
Money market accounts are excellent to use for: Emergency funds, wedding
expenses, vacation funds and other short-term savings goals since your money is
readily accessible if you find you need it.
So, if you are one of the lucky ones who will be getting a
refund this tax season, it's hard to argue against getting yourself a money
market account. You can earn a higher interest rate than you would with a
traditional savings account all while keeping your money easily accessible.
Although if you're already finished with your taxes, we suspect you probably
are more responsible than the rest of us. So congratulations!
Telhio Credit Union Money Markey Accounts can be opened
online or in any Telhio Branch Location. Visit telhio.org to learn about Money
Market Special Rates.
Telhio
Credit Union is open to anyone who lives, works, worships, or goes to school in
Central or Southwest Ohio. Founded in 1934, originally as the credit union for
the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative
where its members are also its owners. Driven by its philosophy that members
come first, Telhio is committed to the highest standards of responsibility and
conduct. Telhio offers a variety of innovative programs, services, and products
to support its members' financial needs. Telhio offers twelve branching offices
throughout Central and Southwest Ohio and nearly 4,000 shared branching
locations nationwide. Federally insured by NCUA. Equal Housing Opportunity.
NMLS #251831
