What Is a Money Market Account, and Is It Right For You?
A money market account is a type of savings product that typically earns a higher rate than a standard savings account, while still letting you access your money when you need it. It can offer a middle ground between everyday savings and a CD, so you can earn a competitive rate without committing your funds for a fixed term.
If you've been keeping extra cash in a checking or low-rate savings account, a money market account is a good way to earn more on money you're already setting aside.
How a money market account works
With a money market account, your balance earns interest that's compounded and credited monthly, so your earnings build on themselves over time. Unlike a certificate of deposit (CD), there's no fixed term, so you keep access to your funds. And unlike a checking account, the focus is on helping your savings grow.
Advantages and disadvantages of each type of account
- Savings account: Easy to access but often earns at a lower rate.
- Certificate of deposit (CD): Typically offers a strong fixed rate, but your money is harder to access because it is locked in for a set term.
- Money market account: Provides a competitive rate with the flexibility to access your funds, giving you a healthy balance of earning power and accessibility.
The Northfield Bank Money Market Savings account
Our Money Market Savings account works harder to give you a higher return on your money:
- Earn a fixed 4.00% APY[1] on your full account balance, so you know exactly what you're earning
- Open at any Northfield branch with $20,000+ of new money[1]
- No monthly Maintenance Service Charge and no minimum balance requirement
- Get access to your funds when you need them, without locking it away like a CD
- Interest compounded and credited monthly, so your savings keep building
Is a money market account right for you?
A Northfield Bank Money Market Savings account may be a good fit if you:
- Have savings sitting in a lower-rate account
- Want to earn more without locking your money into a fixed term
- Prefer the certainty of a fixed introductory rate
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