Are you looking for a savings account that offers high dividends while still allowing you access to your money when you need it? If you want to watch your savings grow while having the option to withdraw for a rainy day, a money market account might be the best choice for you.
A money market account is a type of high yield savings account. By combining some of the best features of traditional savings accounts and checking accounts, it offers a smart way to plan for the future.
But how do you make sure you’re getting the most out of your money? Follow these tips to maximize your earnings with a credit union money market account.
1. Start with a Strong Opening Deposit
One of the easiest ways to maximize your returns is to begin with a higher opening balance. Del-One’s money market savings account requires a $5,000 minimum opening deposit, and balances above that amount qualify you for tiered rates. The higher your balance, the higher your dividend rate – which means your money starts working harder from the day you open your account. If you’re rolling funds over from another type of savings, you can also consider consolidating into your Del-One account to take advantage of those better tiers.
2. Maintain the Minimum Balance
Keeping your balance at $5,000 or above not only qualifies you for stronger rates, but it also meets the minimum deposit requirements and waives the $5 monthly low-balance fee. That may not sound like much, but over time even small fees can make a big difference in your interest earnings. If your goal is to grow your savings, maintaining the minimum balance ensures that you are not losing money to fees.
3. Limit Your Transactions
A money market savings account is designed to help you reach your savings goals. While Del-One provides up to six free transactions per month, exceeding that number can lead to fees or reduced earnings. To maximize growth, use your money market primarily as a holding account for your emergency fund or other savings. For day-to-day transactions, stick with a checking account instead. That way, your dividends can continue to steadily grow.
4. Take Advantage of Tiered Rates
Not all money market deposit accounts are created equally. Del-One’s competitive, tiered rates reward you for saving more. As your balance grows, you automatically move into higher dividend tiers. For example, someone with $20,000 in their account will earn more than someone with $5,000 – and those additional dividends add up over time. If you receive a tax refund, bonus, or other windfall, consider moving it into your money market account.
5. Use It as Your Emergency Fund
One of the smartest ways to maximize a money market account is to dedicate it as your emergency fund. You can’t predict when a sudden house repair or medical situation might happen, but having your funds in a flexible money market account in Delaware means you can access your money when you need it.
Unlike share certificates and CDs, which are subject to penalties for early withdrawals, a money market account allows you six free transactions per month. By keeping your emergency savings here, you’ll be covered for unexpected expenses while avoiding the temptation to dip into it for less urgent expenditures.
6. Pair It with Other Savings Products
You don’t have to put all your eggs in one savings basket. Consider pairing your money market account with other Del-One products, such as share certificates or retirement accounts. For example, you could keep your short-term emergency fund in a money market account while putting funds you’d like to save longer into a share certificate with a fixed rate. This blended strategy helps you take advantage of higher returns while maintaining liquidity where you need it.
7. Monitor Current Money Market Rates
Interest rates change over time, and staying aware of current money market rates in Delaware can help you make informed decisions. Del-One updates rates regularly, so check our page to know exactly what you’re earning.
8. Use Digital Banking to Stay on Track
It’s easier to maximize your savings when you can track progress in real time. With Del-One’s online banking, mobile banking and eStatements, you can check your balance, recent transactions and dividends earned anytime, anywhere. Setting alerts for balance thresholds or transaction limits can also help you stay focused and avoid dipping below key levels that affect your earnings.
Ready to start saving smarter? Speak with a Del-One FCU representative today and put your money to work with some of the most competitive money market rates in Delaware.