Friday, September 16, 2016

Understanding Money Market Accounts

Not everyone feels comfortable with the volatility of the stock market, and that's why for some people, a money market account might be the best option. These types of account can be a great place to park your cash. It's set aside from the rest of your funds, while still being accessible if needed. Keep reading to learn more about money market accounts and how you can open one at First Bank of the Lake today!

What is a Money Market Account?

A money market account is a type of savings account that typically earns a higher amount of interest than a basic savings account. The interest on a money market account is usually compounded on a daily or monthly basis and paid on a monthly or quarterly basis. Money market accounts offer a wide range of rates, that will vary from bank to bank. That interest is how the bank thanks you for letting them use your money. When you have money in a money market account, the bank takes that money and makes other investments or loans. Money market accounts typically require a minimum balance higher than a basic savings account. These accounts are different from money market funds, which are investments that can lose value if the market falls. Money market accounts are backed by the Federal Deposit Insurance Corporation at banks and the National Credit Union Administration at credit unions, for up to $250,000 per depositor.

Money Market Accounts vs. Savings Accounts 

As the customer, the differences between a money market account and a basic savings account aren't that big. As mentioned above, the main differences are that money market accounts typically have a higher minimum balance and yield a better interest rate than a basic savings account would. Both types of accounts are FDIC insured and have some basic restrictions on how often you can withdraw from them.

Money Market Accounts with First Bank of the Lake

To open a money market account with our Lake of the Ozarks bank, you'll need a minimum of $500. With this account, you will get a monthly statement, an image of your checks and free direct deposit. You will need to keep a minimum balance in your account to avoid fees. If your balance falls below $1000 on any day in the statement cycle, a maintenance fee of $10 will be imposed once during the cycle. In addition, Federal Regulations restrict the number of withdrawals per month. Over 3 checks per cycle will result in a $10 charge each. Over 6 debits per cycle will also result in a $10 charge each.

To learn more about opening a money market account with First Bank of the Lake, give us a call at 573-348-2265 or stop by our bank in Osage Beach to talk to one of our friendly account specialists. First Bank of the Lake is known for offering higher money market rates than other banks in the area.  Our goal is to find the right product or service to meet your financial needs. We're sure we have the perfect account to meet your needs.

First Bank of the Lake - Striving For Excellence
Member FDIC. Equal Housing Lender.

Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway
Suite 100
Osage Beach, MO 65065

(573) 348-2265

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