What Is a Good Money Market or Online Account to Save Money?

A money market or savings account can be an excellent place to stash money for short-term use. Whether you need to build an emergency fund or save up for a major purchase, you want to make the most of the money you put aside. Getting a good interest rate can increase the value of your savings and help you accumulate the nest egg you need that much faster.


Grand Opening Specials

One of the best ways to get a great rate on the money market or savings account you need is to keep an eye out for grand opening specials. When a new bank moves into town, that bank often offers excellent specials for those who open new accounts. Depending on the bank, you might be able to get an excellent rate of interest for opening a new money market or savings account.

Minimum Deposit

Before you start shopping for a money market or savings account, you first need to determine how much money you have to invest. Every money market and savings account has its own minimum deposit requirement, and if you do not have at least that much, you cannot open the account. You might also need to maintain a minimum balance to avoid service charges and fees.

Shop Around

The best way to get a good interest rate on any money market or online savings account is to shop around as much as possible. Banks, both the brick and mortar variety and their online counterparts, compete with one another to offer the best rates. You can use that competition to your advantage by shopping both online and off. You can find websites that compare interest rates and give you a list of the banks that currently offer the best rates. You can also shop around in your own neighborhood and compare interest rates for money market and savings accounts.
   
Monitor Your Interest

Unlike a certificate of deposit, which pays a set rate of interest for the life of the instrument, the interest on a money market or savings account is subject to change without notice. That means you could start out with an account that has the best rate in town, only to find the rate dropping after only a month or two. If you fail to monitor the actual interest you receive, you could lose money you would otherwise be earning. The wide availability of online banks and easy transfers means you can move your money around to keep earning the best possible rate of interest.