Money Market Accounts

A Money Market Account (MMA) is a bank account that combines benefits of a savings and a checking account. It's a mid-level interest account, typically accruing more interest than most checking and savings accounts, and less interest than many mutual funds or other high-interest accounts.

Minimum opening balances vary by account type. Our standard F&M MMA requires a $200 minimum deposit (waived if you or a co-applicant is under 23). The Performance MMA requires $250, and the ICS Money Market has a $500,000 minimum. Please check the details for each account.

Withdrawal frequency depends on the account. Standard F&M MMAs allow two free withdrawals per month (additional withdrawals incur a $2 fee each). The Performance MMA allows 6 free withdrawals per cycle before a fee applies. MMAs are designed for savings, so they may have more restrictions on certain types of withdrawals than checking accounts.

MMAs are excellent for short to medium-term financial goals, like saving for a vacation, a car, or building an emergency fund. They help you accrue interest more quickly than a standard checking account, potentially speeding up your savings timeline.

For long-term goals such as a child’s college fund, buying a house, or retirement, other accounts like IRAs or specialized savings vehicles might be more suitable due to potentially higher long-term growth or tax advantages. MMAs, with lower interest rates than some long-term investments, might not always keep pace with market volatility or inflation over many years.

Both generate interest, but Money Market Accounts (MMAs) typically offer higher interest rates than standard savings accounts. MMAs may also have higher minimum balance requirements. Savings accounts often have lower or no minimums and might offer more flexibility for frequent small deposits, while MMAs are geared towards growing larger balances with some access and potentially check-writing or debit card features (varies by MMA type).

Checking accounts are designed for daily transactions and typically offer unlimited withdrawals and features like debit cards and check writing. They usually earn very little or no interest. Money Market Accounts (MMAs) are better for short to medium-term savings, as they accrue interest at a higher rate than checking accounts. However, MMAs have limits on the number of certain types of withdrawals per month to encourage saving.

MMAs are best for short to medium-term goals like a vacation or emergency fund. For long-term goals like retirement, other accounts such as IRAs or investment accounts may offer better growth potential or tax advantages.

Yes, all F&M deposit accounts, including Money Market Accounts, are FDIC-insured up to the maximum allowable limits, protecting your funds. ICS offers access to extended FDIC insurance through a network for larger deposits.