When you’re a student, more often than not, money is a pretty pressing issue in your life. Many of us will have gone from living at home, with parents to pay the bills and do the weekly food shop, to suddenly needing to adjust to a lifestyle where daily McDonald’s binges are a worrying drain on money and actually not okay. It might sound funny, but money issues can actually cause real pressure – one study found that a staggering 70% of uni students reported feeling stressed about their finances.
If this is you, first off, don’t fret – you can still enjoy the occasional McDonald’s. And with a bit of budgeting, and an effective savings account, you can soon not only free yourself of any awkward parent debt, but start getting way better interest on your savings, too. But how can you do that the most successfully? By getting yourself a money market account.
What is a money market account?
In short, a money market account is just like your general savings bank account, except with a few additional perks that essentially makes it better in every way. With a money market account, you can expect to earn a higher savings rate than from a normal savings account – basically meaning that you can get more back from putting your money in a money market account than you would from a savings alternative.
While savings accounts are known for generating a ridiculously low interest year-by-year (and may be set to worsen in the current political situation), money market accounts are a little more generous. These accounts might expect you to maintain a higher balance than other savings accounts, but you can get a better interest back for doing so. Typically, you can expect at least double, maybe even triple, the interest rate from a money market account.
How do I set up a money market account?
You don’t need to be an expert by any means to open up a money market account. Just do your research, shop around, and find the bank that’s right for you. Then it’s a matter of contacting the bank for assistance, getting all your details set up, and depositing your initial sum of money. Here’s where you need to take note, as not all accounts want the same minimum deposit, and some may be too far out of your current financial capacity. Don’t be afraid to ask questions if you’re unsure.
Where can I go for more info?
Committing to a money market account is pretty simple, but you still want to do your research before you come to a final decision about which bank to go with. You might find the Best Money Market Accounts (Our Top 7 Picks of 2019) a useful read if you’re still uncertain on which direction to move in. Alternatively, you can pop into your current banking branch for a chat with a representative. Just be sure to keep an open mind and not allow yourself to be persuaded into something you’re not comfortable with.
