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 Plus, the interest that you earn can be withdrawn once it's posted to your account!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