Credit Union accounts are similar to regular savings accounts, with added features designed to increase yields. Wayne Westland Federal Credit Union money market accounts offer exceptional flexibility and may prove to be the right choice for those who will not need to access their savings on a regular basis

Money Market Features

When considering money market accounts, members should understand the benefits and differences when compared to traditional savings accounts.

• Better Interest Rates: Since money market accounts typically have balance thresholds and withdrawal restrictions, they are able to offer consistently higher interest rates compared to traditional savings accounts.

• Limited Withdrawals: Many Credit Unions restrict the number of permissible withdrawals on a per/ month basis. This can range from as few as three to as many as six per month.

• NCUA Insurance: Money market accounts are eligible for National Credit Union Administration (NCUA) protection. No one has ever lost money in an account insured by the NCUA. This protection is authorized through the United States federal government. Current levels of insurance include $250,000 per account holder through 2013.

• Early Withdrawal Fees: While traditional banks often charge early money market withdrawal fees, a Credit Union that does not impose this type of tiered fee structure is preferable.  Hidden fees can often negate any advantage gained through higher dividend yields.

Other Considerations

It is important to understand the distinction between a money market account and a money market fund. Since money market funds invest in short term financial instruments, they are really mutual funds that offer no form of FDIC or NCUA protection. It is important to talk to a member service representative with any questions regarding account classifications.

The choice between a traditional savings account and a money market account will depend primarily on how the account will be used. Savings accounts work best for unforeseen emergencies, medical bills, home repairs, and a myriad of other situations that require immediate cash.

For longer-term savings, Credit Union members may be better served through money market accounts. Wayne Westland Federal Credit Union members who only have a periodic need to access their funds will enjoy the benefit of higher interest rates and the same NCUA protection that is provided to regular savings accounts.