Money Market or Checking: Which Account is Right for You?

Recent low interest rates have many people reconsidering where to put their money. The traditional account chosen for higher interest rates is a money market account, which usually generates higher interest than a typical checking account. These accounts are preferred for some because they gain higher interest rates on higher balances and offer flexibility to the customer as an option to move around their money as interest rates fluctuate. However, the current national average interest rate for money markets is relatively low, starting at just 0.15%. So, what’s the better option, a money market account or an interest-bearing checking account?

Benefits of a Money Market Account

The answer to that would depend on what you’re looking for. “A money market account is actually a ‘savings account’ that allows you to write up to six checks a month,” Patty Mills, AVP, Branch Manager at Town and Country Bank, says. “I offer this to customers who would like to benefit from a higher rate of interest than a typical savings account and who like the option to write a check instead of transferring from savings to checking. They do not have the option of a debit card with this account though.”

The additional benefit of a money market account is the flexibility that comes with it. Since interest rates fluctuate often, putting your money into a money market account while interest rates are low gives you the option to move it into another account as interest rates rise, while safely earning interest in the meantime.

Benefits of a Checking Account

“Interest checking accounts, on the other hand, are better fitted for customers who like to keep higher balances in their checking account,” says Patty. “They will still earn interest but have the convenience of a debit card and unlimited check writing.”

Establish Plans for Your Money

Patty recommends identifying your financial goals before choosing which account to go with. “One deciding factor when talking with customers is to know what kind of plans they have for their money.  If their plans are more long-term, then I definitely encourage them into the options of a money market account, especially our Relationship Money Market. Overall, the interest tiers are higher than the Clear Interest Checking account.”

Committed to Serving You

Visit one of our 12 conveniently located branches, browse through our dedicated Personal Savings and Personal Checking webpages, or contact our Customer Service Solution Center at 1-866-770-3100 to learn more about our money market and checking options. Already know which account is right for you? Open an account today!