Money Market vs Savings Accounts
Last year, Bankrate.com reported that the average emergency cost $2,500. Could you cover that today?
A lack of savings is the #1 reason people accumulate debt.
Roughly 1/3 of Americans currently owe on an emergency expense they couldn’t cover.
God wants us to look to Him to provide for our needs – not others. He tells us to look to the ant: it stores its provisions in summer and gathers its food at harvest.
Start saving something today in a safe place where it will grow without risk. A local bank, credit union, or an online bank are good options because you can make direct deposits and withdrawals in the event of an emergency.
Money market account and savings accounts are considered demand deposits.
Both earn interest. Both allow withdrawals but the terms and fees can vary.
Since writing checks may be important, know what’s available.
Money market accounts often require larger deposit amounts, but the reward can be a higher rate of interest. Virtual banks pay higher interest and sometimes the rate varies only slightly between MM and savings.
If you’re just starting to save, look for a bank that doesn’t require a minimum deposit and pays a decent interest rate on a savings account.
If and when you have the funds to make a larger deposit, research a money market account that pays the highest interest rate possible. Make that money work for you as it grows for the inevitable emergency need.
Since housing, transportation and food are Americans’ 3 biggest expenses, consider how you can cut back in these areas to begin saving today.
Preparation today will be your best defense for the future!
If you’re struggling to pay your bills, using a debt management plan today can help ensure that you don’t have the same problems a decade from now. I highly recommend Christian Credit Counselors. For more information call the Crown Helpline at 800-722-1976 or online at crown.org/ccc