Money Market Accounts: What's Their Worth?

February 17, 2017 | Sreeni Rao

Has someone ever suggested that you need a money market account and you thought, “What is a money market account?” You’re not alone. Plenty of people don’t know what money market accounts are, and even if they do, they might be unaware of how they work and what they’re worth. Let’s go over the benefits of a money market account and find out if one is right for you.

What are Money Market Accounts?

A money market account is a savings accounts that offers you the convenience of liquid funds like a regular savings account, yet still provides you with the ability to earn higher dividends. You don’t have term conditions like you do with a certificate account, making money market accounts a bit more flexible. But like regular savings accounts, you’re usually only able to make a limited number of withdrawals per month.

What is a money market fund and how is it different from a money market account?

Money market funds differ from money market accounts because they’re investments that can actually lose value if the market falls. Because of the higher risk, money market funds can mean a higher return, but because they’re managed funds, there is a small fee for that management. However, only a money market account has the same protection as a standard savings account.

How does a money market account work?

Because a money market account is very similar to a standard savings account, they’re a great option when you want the same security and access to your funds, but with a higher dividend rate. Money market accounts usually require a bigger deposit to open than a traditional savings account, and you may need to maintain a certain account balance. However, this often works well if you’re saving for something special or for an emergency fund. In addition, higher balances can often earn higher dividends.

Does Mission Fed offer Money Market Accounts?

At Mission Federal Credit Union, we offer competitive rates on Money Market Accounts that work for you. If you’re able to maintain a $2,500 balance, a Money Market Account can help you earn a higher dividend rate and earn you more savings.

A Mission Fed Money Market Account has many benefits, including:

  • Competitive dividend rates based on balance tiers
  • $2,500 minimum balance for dividends (no penalties/fees for balances less than $2,500)
  • Free online, mobile, branch and phone access
  • No monthly fee
  • Convenient overdraft protection
  • Federally insured by NCUA

Regardless of whether you’re looking for an account for your long-term savings, or need a short-term account for savings you intend to invest down the road, a Mission Fed Money Market Account can help you save even more. Stop by a branch today to learn more about whether a Money Market Account is right for your needs.


“Mission Federal Money Market Accounts.” Mission Federal Credit Union.

Burnette, Margarette. “What Is a Money Market Account.” Nerdwallet.

“Economy 101: Money Market Accounts.” Practical Money Skills for Life.

The content provided in this blog consists of the opinions and ideas of the author alone and should be used for informational purposes only. Mission Federal Credit Union disclaims any liability for decisions you make based on the information provided. References to any specific commercial products, processes, or services, or the use of any trade, firm, or corporation name in this article by Mission Federal Credit Union is for the information and convenience of its readers and does not constitute endorsement, control or warranty by Mission Federal Credit Union.

Sreeni Rao

Sreeni Rao

Sreeni Rao is 1st VP Sales and Service for the Branch Network at Mission Federal Credit Union in San Diego, California. Sreeni provides direct leadership, coaching, and management to the dynamic sales teams in Mission Fed’s Branch Network and Business Development Department. His primary responsibility is to develop, direct and execute a retail sales and service strategy that meets and exceeds Mission Fed’s sales objectives and organizational goals.

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