Previous | IRS extends tax payment deadline to July 15, 2020 Next | Four tips for avoiding overdraft fees
May 11, 2020 / Sarah Stansfield
Savings Accounts: Which is right for you?

Savings Accounts: Which is right for you?

By Sarah Stansfield, community office manager at F&M Trust’s Mont Alto office

Trying to set aside money? It’s important to understand your options when choosing which account to use. Savings accounts, money market accounts and certificates of deposits (CDs) are excellent
choices when it comes to stashing money and earning interest. Here’s an overview of each:

Savings accounts
two men reviewing papersDeposits are federally insured, and you can withdraw your money quickly and easily in the event of an unforeseen expense. That’s why savings accounts are excellent options for emergency funds. Some savings accounts come with an ATM card, but you most likely won’t be able to use your debit card to make purchases directly from the account. The interest rates are generally very low. The minimum balance to open a savings account varies by institution but is usually lower than a CD. At F&M Trust, it’s $10, but if your balance dips below $250, you’ll be subject to a fee.

Money market accounts
Money market accounts have a lot in common with savings accounts. They usually earn more interest than savings accounts but have higher minimum balance requirements. When it comes to tapping your savings, money market accounts are typically more flexible and accessible than CDs. Similar to savings accounts, money market account withdrawals and transfers are limited by federal law to six per month. Some financial institutions may have tighter restrictions. At F&M Trust, you need $500 to open a money market account (we call them “money management accounts”). If you have an average daily balance below $1,500, you will be subject to a fee.

CDs
As FDIC-insured accounts, CDs have fixed interest rates and fixed dates of withdrawal, or maturity dates. Maturity periods can range from days to years, and if you withdraw your funds before the maturity date, you will face a penalty fee. So, if there’s a chance you’ll need that money for an emergency, opt for a savings or money market account instead. The interest rates are usually higher than savings accounts, but so are the minimum balance requirements. At F&M Trust, it’s $1,000 for a 91-day commitment. CDs are a great investment option for people looking for security and robust rates.  

You can use them all
Sometimes, it may make sense to have each of these accounts as part of your financial plan.

Recent Articles
Post Covid Investing: Time for a Deeper Look
Post Covid Investing: Time for a Deeper Look

Post Covid Investing: Time for a Deeper Look

May 03, 2021 / Scott Ehrig

First quarter 2021 economic review and outlook
First quarter 2021 economic review and outlook

First quarter 2021 economic review and outlook

April 26, 2021 / Warren Hurt

Beware of unemployment fraud — even if you’re employed
Beware of unemployment fraud — even if you’re employed

Beware of unemployment fraud — even if you’re employed

April 22, 2021 / Ray Wills

Checking your credit is free, for now — here’s why you should take advantage
Checking your credit is free, for now — here’s why you should take advantage

Checking your credit is free, for now — here’s why you should take advantage

April 15, 2021 / Ray Wills

What is a balance transfer — and when does it make sense?
What is a balance transfer — and when does it make sense?

What is a balance transfer — and when does it make sense?

April 08, 2021 / Cynthia Marconi

IRS extends federal tax payment deadline to May 17
IRS extends federal tax payment deadline to May 17

IRS extends federal tax payment deadline to May 17

April 02, 2021 / Shelby White

How to spot investment coaching scams
How to spot investment coaching scams

How to spot investment coaching scams

March 17, 2021 / Ray Wills

Individual investor muscle
Individual investor muscle

Individual investor muscle

March 08, 2021 / The Merrill Anderson Company

Investor alert: Robinhood app hit with hefty fine from federal regulators
Investor alert: Robinhood app hit with hefty fine from federal regulators

Investor alert: Robinhood app hit with hefty fine from federal regulators

February 23, 2021 / Shelby White

Join our e-newsletter

Sign up for our e-newsletter to get new content each month.

NOTICE: YOU ARE LEAVING F&M TRUST!

You are now leaving the F&M Trust website. Links to third-party sites are provided for your convenience. Such sites are not within our control and may not follow the same privacy, security or accessibility standards as ours. F&M Trust neither endorses nor guarantees offerings of the third-party providers, nor is F&M Trust responsible for the security, content or availability of third-party sites, their partners or advertisers.