Is A Money Market Account Right for You?

What is a Money Market Account (MMA)?

A money market account is a type of savings account that typically earns more interest than a basic savings account and also requires a larger minimum deposit. As with most basic savings accounts, MMAs may limit your monthly transaction amount. This account type is intended to hold your money for an extended period of time with minimal withdrawals, but you do have greater flexibility with a money market account than with a certificate of deposit – which “locks in” your funds for a set amount of time and incurs fees if they’re withdrawn early.

What Interest Rate Will I Earn in a Money Market Account?

Along with a higher base interest rate as compared to basic checking and savings accounts, money market accounts may offer tiered interest rates – which means you can earn an even higher rate on large balances. However, you’ll need to meet the requirements on the account in order to earn the highest interest rate.

View the tiered interest rates on our Purpose Money Market Account.

Is There A Minimum Deposit for Money Market Accounts?

Yes, most money market accounts require a minimum deposit and/or minimum balance to maintain in the account.

You can find more details on the requirements of our money market accounts here.

Money Market or Certificate of Deposit?

When deciding which account will best fit your financial situation, decide first how short or long-term you intend to keep your money in the account. If your goal is simply to maximize yield while keeping your money safe and you don’t need to make withdrawals, a CD may be the right option for you. But if you have enough funds on hand to open an account and like having the option to withdraw cash as needed, you may enjoy the flexibility of our Purpose Money Market account instead.

You also do not have to pick just one account to house all your money in! A mix of account types is beneficial to anyone’s overall financial portfolio.

Do you already have a certificate of deposit with Hills Bank? Once it comes due, you can use your CD to help fund a Purpose Money Market Account, which requires $25,000 in new money or an active Hills Bank checking account to open*.

If you are interested in learning more about the accounts we offer, you can chat with us via the button below, speak with a banker at 1-800-445-5725, or stop by any of our locations to have a conversation today!