Financial News

Put Your Checking Account to Work for You
As we all know, life is full of surprises. Having an account that you can access right away in case of emergencies is a key part of preparing for the unexpected. Instead of keeping funds in a checking account that pays little or no interest, look to an FDIC-insured bank money-market account for higher returns. Even if you do not anticipate short-term uses for the funds, this investment may still be right for you. It provides flexibility and liquidity while also earning a competitive rate of interest.

There are different variations of bank money-market accounts, but they typically provide checks like a checking account and allow you to write up to three checks per statement cycle. The interest rate is variable and may be adjusted periodically to reflect current market conditions. Another advantage is that you are able to add funds at any time, and most accounts offer the security of FDIC insurance up to $100,000 per depositor.

Once you have decided to invest in an FDIC-insured money-market account, it is important to realize that they are not all alike. Each bank sets their own rates and changes them periodically. As a result, you will find a difference in the amount of interest you can earn across various institutions. Even a half a percentage point can make a significant difference in your savings over time. Often, investors find they can earn that extra interest by moving their account from a branch-banking environment to a branchless bank. Because branchless banks do business by phone, mail and Internet, they generally do not have the expenses of branch networks. As a result, they can offer FDIC-insured products often at higher rates of return.

Another thing to consider is the bank’s overall strength and performance. There are several nationally recognized bank-rating companies and other sources available to help determine the overall soundness and stability of a financial institution. A list featuring many of the rating services can be obtained through the FDIC website: www.fdic.gov. Please consult your tax advisor or financial planner for more information to help determine if this product is right for you.

AAA offers FDIC-insured bank money market accounts through MBNA America Bank.
AAA members have more than $1.5 billion on deposit with MBNA nationwide. For current rates or to open an account, call AAA Financial Services at MBNA at 800-818-6771 from 8 a.m. to 8 p.m. (EST), Monday through Friday; and 8 a.m. to 5 p.m., Saturday; or visit aaa.com and enter priority code JA0P3.