Benefits of a Money Market Account
A money market account (MMA), also known as a money market deposit account (MMDA), is a type of interest-earning savings account offered by some banks and credit unions. Money market accounts provide many of the conveniences of a typical savings account but with a major added benefit — they often offer higher rates than traditional savings or checking accounts. Some financial institutions set limits on how frequently you can withdraw funds from their money market accounts or high minimum deposit requirements. However, competitive money market accounts opened through Raisin do not currently have any such withdrawal limits and only a $1 minimum deposit . So, a money market account allows you to earn more interest on your savings while still having easy access to your funds when needed.
Tips for Using Money Market Accounts
Why settle for average rates when it comes to your savings? A traditional savings account may offer more interest than, say, a checking account. But savers can do much better at extracting value from their cash reserves by opting for a higher-yielding savings product like a money market account.
What can you do with a money market account? Consider money market accounts for holding your emergency fund, savings for a major expense like college tuition, or extra cash you don't need access to on a daily basis. Holding those reserves in a money market account lets you put them to work. Click the button below to read more about how you can use a money market account to up your savings game.
Money Market Accounts vs. Traditional Savings Accounts
How to Open a Money Market Account
Shop around for competitive money market accounts from different banks and credit unions. Choose one that works best for your needs. Consider accessibility, money market account rates, minimum balance conditions, maintenance fees and other charges, and withdrawal limits, if any.
Get your documents in order
Banks and credit unions will require basic information about you to confirm your identity and eligibility. Accounts opened through Raisin are through an entirely online process that verifies your identity digitally.
Make an opening deposit
This is your first step toward earning interest. Rules are different with each institution. Some banks require a deposit to open an MMA, while others let you open the account first and fund it later. With Raisin, all accounts have just a $1 minimum deposit to open. Just remember, the higher your deposit, the higher your earning potential.
More About Money Market Accounts
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What Is a Money Market Account?
A money market account (MMA) is a type of high-interest-earning savings account offered by some banks, credit unions, and online financial institutions. MMAs provide many of the conveniences of a typical savings account but with a major added benefit — they often offer higher rates than traditional savings accounts or even high-yield savings accounts (HYSAs).
A money market account is often also called a money market deposit account (MMDA). The money market deposit accounts offered on Raisin are equivalent to money market accounts.
What is the interest rate on a money market account?
On average, money market account rates are considerably higher than regular savings account interest rates. Money market account interest rates can be similar to or just slightly less than those offered through certificates of deposit (CDs).
CDs, though, require you to keep a set amount of savings untouched in an account to obtain their higher rates. MMAs, on the other hand, are much more liquid. With MMAs, you can generally withdraw and deposit money at any time without penalty or fees.
How does a money market account work?
When choosing an account to park your hard-earned money, it often comes down to a decision between having greater accessibility or earning a higher interest rate. A money market account can strikes the right balance between both benefits. Once you’ve opened an MMA, you can continue to deposit money into and withdraw money from it. That’s unlike how a certificate of deposit works, for instance.
Can I withdraw money from a money market account?
Withdrawals from money market accounts had been limited to six per month, but in April 2020, the Federal Reserve Board announced a new regulation allowing financial institutions to lift the cap on withdrawals on all savings accounts. The goal of this measure was to make it easier for customers to access their savings at a time of financial need due to the Covid-19 pandemic.. A few months after the initial announcement, the Fed updated its Frequently Asked Questions on savings deposits to indicate that the Board does not have plans to re-impose transfer limits.
While banks and credit unions are not obliged to enforce these changes, money market accounts opened through Raisin do not have any withdrawal limits.
What can a money market account be used for?
A money market account lets you earn more interest on your savings while still having easy access to your funds when needed. These features make MMAs a great option for the following savings goals:
An emergency fund for unexpected costs such as medical bills or car repairs
Major expenses like a down payment for a new home or college tuition
Short-term wants and needs like an upcoming vacation or new car purchase
Extra funds that you don’t need access to on a daily basis
Find and open online money market accounts, all through the convenience of Raisin
Raisin’s unique online marketplace lets you compare and access an exclusive selection of federally-insured money market accounts with competitive interest rates and flexible features. All this with a single, one-time registration and an all-in-one portfolio.
Money market accounts offered through Raisin can be a great alternative to the standard savings account options you get through a local brick-and-mortar bank. In addition to offering less competitive money market account rates, such banks may also put limits on the frequency of withdrawals. Raisin selects exclusive higher-earning savings accounts from its network of partner banks and offers them with no limits on withdrawals.
How to Choose a Money Market Account
What Is Raisin?
Raisin brings together high-yielding savings products offered by a network of U.S. financial institutions. It’s your destination to discover competitive savings products and start saving wisely. Select and fund multiple savings products from different institutions and manage them all from one account.
Funds deposited into any of the savings products available through Raisin are always held by a federally insured financial institution. A very easy and safe way to diversify your deposit portfolio. We use a host of cybersecurity measures to protect your funds and sensitive information.
Savings products from our network of financial institutions offer flexible terms and some of the most competitive interest rates. You can easily find the right product or mix of products for you.
One account to hold all your deposit products. Simplified statements. Easy access to manage your funds – all through a streamlined digital platform.
How Raisin Protects Your Money and Personal Information
Federal Deposit Insurance Corporation
National Credit Union Administration
Cybersecurity is a top priority at Raisin
Open an Account in 3-5 Minutes
the right product for your savings goals.
with an email address and password, then verify your identity and bank information.
the savings products you add to your new Raisin account.
How Raisin Compares
Raisin is a digital platform that gives savers unparalleled access to a variety of deposit products through the convenience of a single account, helping you unlock the growth potential of your cash savings.
Raisin customers use the platform to fund federally insured deposit products offered by numerous U.S. banks and credit unions with a wide range of maturities and APYs (annual percentage yield), allowing you to build a savings strategy to suit your earning and liquidity needs.
Raisin is not a bank. It provides the digital “storefront” where banks and credit unions can promote their deposit products.
Raisin is operated by Raisin LLC, a 100% subsidiary of Raisin GmbH, a trailblazer for open banking in the deposits and investments space. In the U.S., Raisin helps banks and credit unions improve their deposit funding by offering national reach for their retail deposit products, and provides savers with better access, more choice and higher convenience when evaluating savings products from FDIC insured banks and NCUA insured credit unions.
Your Raisin account gives you access to savings accounts and certificates of deposit offered by a variety of banks and credit unions with the security of federal deposit insurance. These products include:
High-yield Savings Account (HYSA). As its name indicates, this account type functions like a traditional savings account — with typically no restrictions on depositing and withdrawing funds — but earns interest (or dividends in the case of credit union savings products) at rates that are higher than the national average for standard savings accounts.
Money Market Deposit Account (MMDA). Also known as a money market account or MMA, this type of savings account offers a varying rate that allows you to earn interest (or dividends) on your funds with maximum flexibility for withdrawals. Like a HYSA, an MMDA offers features of a traditional savings account with typically higher returns.
No Penalty CD. Through the flexibility of a No Penalty CD, you can lock in a competitive rate for a fixed term with the option to make a full withdrawal without having to pay a penalty for the early termination. Terms and conditions may vary by product. Please see specific product terms for more details.
Fixed Term CD. With this longstanding savings vehicle, funds are held for a fixed term, and a competitive APY (annual percentage yield) provides safe, predictable earnings. In contrast to No Penalty CDs, typically you are charged a fee if you do not complete the full term of the Fixed Term CD.
Interest (or dividend in the case of credit union savings products) is compounded daily and posted to your account monthly.
The short answer is yes! Raisin exclusively partners with FDIC-insured banks and NCUA-insured credit unions.
For Raisin customers who hold savings products offered by one of our partner banks, funds are insured by the FDIC up to the maximum amount in accordance with and as permitted by law at each bank holding their funds. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per account ownership category. Ownership categories as defined by the FDIC include single bank accounts (owned by one person/depositor) and joint bank accounts (owned by two or more persons/depositors). Revocable trust accounts and some types of retirement accounts (e.g., IRAs) are among the other ownership categories covered by FDIC insurance. All deposits you have at a bank — whether made through Raisin or otherwise — count toward the deposit insurance limit. If funds held at a bank in a certain ownership category exceed the coverage limit, then the amount in excess of the limit will not be insured.
For Raisin customers who hold a savings product offered by one of our partner credit unions, funds are insured by the NCUA through its Share Insurance Fund. According to the NCUA, each credit union member has at least $250,000 in total coverage. The Share Insurance Fund insures individual accounts up to $250,000. Additionally, a member’s interest in all joint accounts combined is insured up to $250,000.
At Raisin, cybersecurity is our priority. Raisin is a SOC 2 certified platform, meaning it has been validated by outside auditors across five (5) key information security principles. We also use a variety of measures to protect our customers' data, privacy and transactions, including:
• User authentication. The Raisin platform uses multi-factor authentication combined with leading authentication technology to validate our customers’ identities.
• Data encryption. Your personal information is encrypted in-transit and at rest using advanced cryptographic security algorithms.
• Site protection. Web application firewall advanced internet protection technologies are implemented to protect Raisin.com from malicious actors, botnets and denial of service attacks (DDOS).
• Monitoring. An always-on information security monitoring platform detects and alerts us to information security events.
• Assessments. Our platform undergoes vigorous security assessments and testing throughout the lifecycle of application development, from architecture planning to production phases.
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A. Check out our savings marketplace and choose a product in which you would like to deposit money.
B. Create your username and password.
C. Complete an application and, after successful identity verification, link a bank account from which to fund your first savings product.
D. Start earning interest as soon as your money is received by the bank or credit union offering the savings product you selected.
Any questions or concerns? Email us at email@example.com.
All deposits and withdrawals are completed within one to three (1-3) business days. After the initial deposit a withdrawals limitation for the first few business days may exist.
Business days are Monday through Friday excluding U.S. bank holidays.
For products offered by banks, all necessary registration is handled when you become a Raisin customer. One of the many benefits of our platform is that you can open a single account and earn competitive interest rates from banks in the Raisin network. When you select and fund a savings product offered by a credit union, there is an additional step of becoming a member. Raisin makes that process quick, easy and free. You still have one Raisin login and can view all your savings products in one convenient dashboard.
The current APY for your savings products can always be viewed on the Account Overview page when you are logged in to Raisin. This information also appears on monthly statements.
You cannot currently link your Raisin account to a third-party app, but we may offer this feature in the future. For now, you will not be able to link your selected savings product to a third-party app even if the bank or credit union offering that product does so outside of the Raisin platform.