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Money Market Savings Account

Money Market Accounts pay rates better than savings, while keeping your funds available.

Open a Money Market Savings Account
  • Overview
    • Higher balances earn higher rates.
    • Six (6) preauthorized transfers and/or withdrawals per statement cycle
    • $1,000 minimum deposit to open
    • A minimum balance of at least $1,000 is required to keep the account open

    Enjoy flexibility and earn a premium interest rate

    Money Market Plus account requires a minimum deposit of $1,000, offers interest calculated based upon the daily balance, and is paid and compounded monthly. Dividend rates are tiered, offering higher rates for higher balances!

    Open a money market account now!

    Should I open a money market savings account?

    Yes, if you want to build interest, have access to funds in a pinch, and plan to have balances over $1,000 combined with an insured credit union account’s safety.

    Money market savings account advantages

    Money Market accounts have a better interest rate than you would receive with a regular savings account. You are also able to write checks to make purchases from the account.

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  • Rates

    Rates

    Money Market Plus Accounts

    Rates Effective as of: 07-14-2024
    Minimum Deposit Dividend/Interest RateAPY
    $1,000 - $2,4990.349% 0.35%
    $2,500- $9,999 0.499% 0.50%
    $10,000-$24,9990.598%0.60%
    $25,000-$49,9991.094%1.10%
    $50,000-$99,9991.144%1.15%
    $100,000-$249,9991.243%1.25%
    $250,000 and Above2.960% 3.00%

    APY=Annual Percentage Yield

    Money Market IRA

    Rates Effective as of: 07-14-2024
    Minimum Deposit Dividend/Interest RateAPY
    $1,000 to $2,499 0.349% 0.35%
    $2,500 to $9,9990.499%0.50%
    $10,000 to $24,9990.598%0.60%
    $25,000 to $49,9991.094%1.10%
    $50,000 to $99,9991.144%1.15%
    $100,000 to $249,9991.243%1.25%
    $250,000 and above2.960%3.00%

    APY=Annual Percentage Yield

  • FAQs

    Frequently Asked Questions

    An Educational IRA Certificate, more commonly known as a Coverdell Education Savings Account (ESA) Certificate, is a savings product designed to help families save for educational expenses. This type of account combines the benefits of a Certificate of Deposit (CD) with the tax advantages of a Coverdell ESA. Here’s a detailed explanation of its key aspects:

    Key Features:

    1. Tax Advantages:
      • Contributions grow tax-deferred, and withdrawals are tax-free when used for qualified educational expenses.
    2. Fixed Interest Rate:
      • Like a traditional CD, an Educational IRA Certificate offers a fixed interest rate, providing a predictable return on your investment over a specified term.
    3. Term Options:
      • These certificates typically come with various term lengths, allowing you to choose one that matches your timeline for when the funds will be needed for educational expenses.
    4. Contribution Limits:
      • The annual contribution limit for a Coverdell ESA is $2,000 per beneficiary. Contributions must be made with after-tax dollars, but the earnings grow tax-deferred.
    5. Age Limits:
      • Contributions can be made until the beneficiary reaches age 18. The account must be used for educational expenses by the time the beneficiary reaches age 30s.
    6. Qualified Expenses:
      • Funds can be used for a wide range of educational expenses, including tuition, fees, books, supplies, equipment, and in some cases, room and board for students enrolled at least half-time.
    7. Transferability:
      • If the designated beneficiary does not need the funds, the account can be transferred to another eligible family member without penalty.

    Benefits of a Educational IRA Certificate:

    • Tax-Free Withdrawals: When used for qualified educational expenses, withdrawals are tax-free, providing significant savings.
    • Predictable Returns: Fixed interest rates offer stability and predictability for your savings.
    • Wide Range of Uses: Funds can be used for a variety of educational expenses, covering primary, secondary, and higher education.

    Considerations:

    • Contribution Limits: The annual contribution limit is relatively low, which might not cover all educational expenses but can significantly help.
    • Age Restrictions: Contributions must stop when the beneficiary turns 18. Funds must be used by age 30, or they will incur taxes and penalties.
    • Early Withdrawal Penalties: If funds are not used for qualified educational expenses, withdrawals will be subject to taxes and penalties on the earnings.

    Educational IRA Certificates are Suitable For:

    • Parents and Guardians: Those looking to save for their child's educational expenses in a tax-advantaged way.
    • Family Members: Relatives who want to contribute to a child's education savings.
    • Long-Term Planners: Investors who prefer the stability and predictability of a fixed interest rate over time.

    An Educational IRA Certificate is an excellent tool for families planning for future educational expenses. It combines the security and predictability of a traditional CD with the tax advantages of a Coverdell ESA, making it a valuable addition to your education savings strategy.

    A Money Market IRA Certificate is a retirement savings product that combines the features of a money market account with those of a Certificate of Deposit (CD), all within the structure of an Individual Retirement Account (IRA). Here’s a detailed explanation of its key aspects:

    Key Features:

    1. Higher Interest Rates:
      • Higher interest rates compared to regular savings accounts. The rates are typically variable, meaning they can change based on market conditions.
    2. Tax Advantages:
      • Contributions grow tax-deferred. If the account is a Traditional IRA, contributions may be tax-deductible. For Roth IRAs, contributions are made with after-tax dollars, but qualified withdrawals are tax-free.
    3. Flexible Terms:
      • These certificates may offer various term lengths, giving you the flexibility to choose a term that aligns with your retirement planning.
    4. Liquidity and Access:
      • Money Market IRA Certificates often provide more liquidity than traditional CDs. You might be allowed to make a limited number of withdrawals or transfers without incurring penalties, although this can vary by institution.
    5. Stable Investment:
      • They are generally considered low-risk investments, providing stability and security for your retirement funds. The principal is typically protected, and you earn a steady return.
    6. Contribution Limits:
      • The annual contribution limits for Money Market IRA Certificates are the same as for other IRAs, set by the IRS.
    7. Insurance:
      • Money Market IRA Certificates are usually insured by the FDIC (for banks) or the NCUA (for credit unions) up to applicable limits, providing an extra layer of security.

    Benefits of a Money Market IRA Certificate:

    • Tax-Deferred Growth: Your earnings grow tax-deferred in a Traditional IRA or potentially tax-free in a Roth IRA.
    • Higher Returns: Often offer higher returns than regular savings accounts while still maintaining a low level of risk.
    • Flexibility: Typically more flexible than traditional CDs, with some allowing limited withdrawals.
    • Security: FDIC or NCUA insurance provides peace of mind that your investment is protected.

    Considerations:

    • Variable Rates: Interest rates can fluctuate based on market conditions, which might affect the growth of your savings.
    • Contribution Limits: Be mindful of the annual contribution limits set by the IRS.
    • Early Withdrawal Penalties: Similar to other IRAs, early withdrawals before age 59½ may incur penalties and taxes, except for qualified exceptions.

    Money Market IRA Certificates Are Suitable For:

    • Conservative Investors: Those looking for a stable and low-risk investment for their retirement savings.
    • Retirement Savers: Individuals who want the benefits of a money market account combined with the tax advantages of an IRA.
    • Those Needing Flexibility: Investors who prefer the potential for higher returns with some access to their funds.

    A Money Market IRA Certificate is an excellent option for individuals seeking a balance between earning a higher return on their retirement savings and maintaining a low-risk investment. It offers the benefits of tax-deferred growth, competitive interest rates, and the security of a money market account, all within the framework of an IRA.

    A Traditional IRA Certificate is a type of savings product offered by financial institutions that combines the benefits of a traditional Individual Retirement Account (IRA) with the features of a Certificate of Deposit (CD). Here’s a breakdown of its key aspects:

    Key Features of a Traditional IRA Certificate:

    1. Tax-Deferred Growth:
      • Contributions to a Traditional IRA are often tax-deductible, meaning you can reduce your taxable income in the year you make the contribution.
      • The money in the account grows tax-deferred, meaning you don’t pay taxes on the earnings until you withdraw the money during retirement.
    2. Fixed Interest Rate:
      • Traditional IRA Certificates typically offer a fixed interest rate for a specified term, providing predictable returns.
    3. Terms and Maturity:
      • These certificates usually have specific terms ranging from a few months to several years.
      • At the end of the term, known as the maturity date, you can either withdraw the funds, renew the certificate, or roll it over into another IRA.
    4. Early Withdrawal Penalties:
      • Withdrawing funds before the certificate matures may incur penalties.
      • Additionally, withdrawals before age 59½ are generally subject to a 10% early withdrawal penalty on top of regular income taxes, though there are exceptions for certain circumstances.
    5. Contribution Limits:
      • The annual contribution limits are the same as for IRAs, set by the IRS.
    6. Required Minimum Distributions (RMDs):
      • Starting at age 73 (as of 2023), you must begin taking required minimum distributions from your Traditional IRA, which includes funds in IRA Certificates.

    Benefits:

    • Secure and Predictable: Since Traditional IRA Certificates offer fixed rates, they provide a secure and predictable way to grow retirement savings.
    • Tax Advantages: Contributions may be tax-deductible, and the earnings grow tax-deferred.
    • Retirement Savings: This is an effective tool for long-term retirement savings, offering a steady growth path.

    Considerations:

    • Penalties for Early Withdrawal: Be mindful of the penalties associated with early withdrawal both from the certificate and from the IRA.
    • Contribution Limits: Stay within the annual contribution limits set by the IRS.
    • RMDs: Plan for required minimum distributions starting at age 73.

    Traditional IRA Certificates are a good choice for conservative investors looking to grow their retirement savings with minimal risk and tax advantages.

    A Roth IRA Certificate, also known as a Roth IRA CD (Certificate of Deposit), is a type of investment that combines the benefits of a Roth Individual Retirement Account (IRA) with the fixed interest rates and security of a Certificate of Deposit (CD).

    Here's a breakdown of the features of a a Roth IRA Certificate:

    1. Tax Advantages: Contributions to a Roth IRA are made with after-tax dollars, meaning you won't get a tax deduction. However, the money grows tax-free, and qualified withdrawals in retirement are also tax-free.
    2. Fixed Interest Rates: Like a regular CD, a Roth IRA CD offers a fixed interest rate for a specified term, providing predictable growth for your investment.
    3. Security: Insured financial institutions widely recognize Roth IRA CDs as secure investments. They safeguard your principal and assure you of a specific return on your investment.
    4. Flexible Terms: Roth IRA CDs come with various term lengths, typically ranging from a few months to several years. Longer terms usually offer higher interest rates.
    5. Contribution Limits: Contributions to a Roth IRA CD count toward your annual Roth IRA contribution limit, which the IRS sets. For 2024, the limit is $7,000, or $8,000 if you are 50 or older.
    6. Withdrawal Rules: You can withdraw contributions from a Roth IRA without penalty. However, you may incur taxes and penalties if you withdraw earnings before age 59½ and before the account has been open for at least five years.
    7. Early Withdrawal Penalties: If you withdraw your money from the CD before the term ends, you may incur early withdrawal penalties, similar to a regular CD.
    8. Retirement Focused: Unlike regular CDs, which are often used for short—to medium-term savings goals, Roth IRA CDs are specifically designed for retirement savings. They provide the advantages of a Roth IRA with the reliability of a CD.

    Overall, a Roth IRA Certificate is an excellent choice for those looking to grow their retirement savings with the security of a fixed-income investment and the tax advantages of a Roth IRA.

    People Driven Credit Union Money Market Savings Accounts are insured to at least $250,000 by the National Credit Union Administration (NCUA) and backed by the full faith and credit of the United States Government.
    A Money Market Savings Account is a type of savings account that typically offers higher interest rates compared to traditional savings accounts. It often requires a higher minimum balance and may provide limited check-writing capabilities.

Money Market Savings Account

Money market accounts pay rates similar to savings accounts and have some checking features.

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Disclosures

People Driven Credit Union savings are Federally insured to at least $250,000 by the NCUA and backed by the full faith and credit of the United States Government. APR = Annual Percentage Rate. Rates effective as of today and may change at any time. Penalties apply for early withdrawal. View our Privacy Policy and read our disclaimer regarding links to other sites.