Once upon a time, cash savers had two main options. A savings account that earned a puny interest rate – but had easily accessible cash. Or, long term savers chose a Certificate of Deposit ( CD ). The rates were much better, but your cash was tied up for several months to several years at a time – not very good if you need cash quickly.
Enter Money Market Accounts. The one we’ll talk about today is the M&T Bank eMoney Market Account. Basically, this account combines the best of both worlds – easily accessible cash and a great interest rate. You don’t have to worry about not having access to your cash when you need it, but you also get to enjoy a healthy ( and safe ) return on your money.
M&T Bank offers a money market account that currently pays you 3.25% APY. They even have a nifty calculator so you can see the interest add up – the eMoney Market Account vs the average savings account. For comparison, ING Direct is currently paying 3.0% APY. Still a healthy rate, but not quite at the level of M&T Bank.
Money market accounts make the most sense out of any savings account today. Why watch inflation eat away your money while it’s making 0.2% in your current savings account? And you don’t want to risk your emergency fund in the stock market ( especially these days ). That’s where the eMoney Market Account comes in – get the rate you want, without the risk.
