9/10/2023 0 Comments Pro money savings![]() ![]() However, it’s important to note that an MMA usually has a variable interest rate that can go up or down with the market. But, with an interest rate of 4.75%* ** (9 times over the national average), you will also be able to grow your money and benefit from withdrawing it when you need it. For example, with an MMA like the Quontic Money Market Account, you can write checks or even use a debit card to pay for purchases as you would with a checking account. An MMA offers some of the benefits of a checking account, plus the ability to earn interest on the balance. Opening a money market account, or MMA, can be another way to earn more interest on your money than with a traditional savings account. A CD ladder allows you to take advantage of the higher-than-average returns of this type of account but still have access to a portion of the money in case of an emergency. If you have the means, consider building a CD ladder, which is when you open several CDs with different maturity dates to stagger your access to your funds. ![]() Rolling the money into a new CD means it will continue to earn interest, but the term will start over, and the money will be inaccessible to you until the term ends. The former means you can use the money to pay for a significant expense, such as a deposit on a home or car, an overseas vacation, or a medical bill. Once the CD term has ended, you’ll have two choices: you can either withdraw the money or roll it into a new CD. Typically, the interest rate will be higher for CDs with longer terms. On the flip side, if interest rates go down after you open the CD, you’ll keep that same higher interest rate for the account term. Depending on how much rates increase, this could cost you hundreds or even thousands of dollars in interest. To start, if market rates rise after the CD term begins, you will be stuck with the lower rate for the entire length of the CD.
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