How to Save in a Growth Money Market

No matter what you do for a living or how much money you make, you need to set up an emergency fund to cover unexpected expenses. One of the best ways to build an emergency fund is with a growth money market account. A money market account pays a competitive rate of interest, while keeping your money safe from loss. A growth money market pays an even higher rate of interest, helping your money grow more quickly. With the current limit for FDIC coverage set at $250,000, you can save plenty of money and establish an automatic savings habit.

• 1

  Shop around for the best growth money market account. Since all bank money market accounts are FDIC insured, you are free to shop around and look for the best possible yield. Check the minimum balance requirement and make sure you are able to meet it before establishing your account.

• 2

  Ask your employer for a direct deposit form. Fill out the form using the routing number and account number from your new growth money market account. Direct part of each paycheck to the money market account. Direct the rest of your paycheck into your regular checking account.

• 3

  Deposit any extra money into the money market account as well. If you get a bonus or a raise, immediately direct at least part of that extra money into your money market account. This will force you to save and help you establish the savings habit that will help you build a large nest egg.