How-to-Guide on How Money Management Accounts Works
1. What Is a Money Management Account?
A money management account (MMA) is a type of bank account that lets you save money while earning a bit more interest (or dividends) than a regular savings account. It’s a good place to put money you want to keep safe and grow, but still have available when you need it. Generally, a MMA savings rate isn’t as high as a Term Share Certificate or a Certificate of Deposit (CD) which locks up your money for a set time, but you are free to withdraw from a MMA account, penalty-free.
2. How Do You Use a Money Management Account?
Deposit Money: You can add money to this account anytime, just like a savings account. Deposits can be made by:
- Going to the bank
- Transferring from another bank account
- Online transactions from your other savings/checking account(s)
- Mobile Deposit
Withdraw Money: You can take out money from this account, but you must adhere to the minimum withdrawal limit of $500.
3. Earning Higher Interest
With a MMA, you earn interest at a higher rate than with a regular savings account. At CSE, your interest compounds weekly, helping your money grow faster over time. The more you have on deposit with the account, the higher your rate. Generally, there are tiers for saving. The more you have on deposit with the account, the higher your rate. For current rates on CSE’s money management accounts, click here.
4. What Are the Requirements and Rules?
- Minimum Balance: There is no minimum balance requirement to open or keep a money management account at CSE. However, you must have an average daily balance of at least $1,000 to earn dividends.
- Withdrawal Limits: At CSE, our money management account requires a minimum withdrawal of at least $500.
- Monthly Fees: CSE money management accounts are fee-free, regardless of your balance.
5. Why Use a Money Management Account?
- Higher Earnings: Earn more on your money without locking it up.
- Flexibility: You can access your money when you need it, although there may be some limits.
- Safety: Like other bank accounts, money management accounts are insured, so your money is protected.
6. Tips for Using a Money Management Account Wisely
- Maintain Minimum Balance: Be sure to keep at least at least $1,000 in the account to ensure that you earn more interest.
- Use for Medium to Long-Term Goals: These accounts are good for saving up for things in the next 6 months to a few years, like a vacation or an emergency fund.
All in all, a money management account is a type of savings account that helps your money grow faster than a regular savings account but still allows you access. It’s a great option if you want your money to grow but don’t want it locked up and inaccessible. Just make sure to follow the account rules to get the most benefit!
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