Maximizing FDIC and NCUA Insurance Benefits for Money Market Accounts

Are you looking to earn more interest on your savings while keeping your money safe? Consider moving your deposits to a money market account (MMA). MMAs are offered by banks and credit unions and are usually insured by the FDIC or NCUA up to $250,000 per depositor, per institution.

FDIC insurance protects your funds in an MMA in case your bank fails. You can have more than $250,000 in insured deposits per bank by spreading your funds across multiple account ownership categories. In the event of a bank failure, the FDIC will intervene to protect your deposits either by arranging a bank sale or by directly paying you.

NCUA insurance provides similar coverage for MMAs offered by credit unions. Like FDIC insurance, NCUA insurance covers up to $250,000 per account category in case of a credit union failure.

To maximize your insurance benefits, consider spreading your funds across multiple account categories, opening MMAs at multiple banks or credit unions, or using services like MaxSafe or Impacts Deposit Corp. Keep in mind that MMAs may not be the best place to deposit large sums of money for long periods, as you can earn higher interest rates with other types of accounts.

If you want to earn even bigger returns, consider investing some of your money in a mutual fund or retirement account. Stay informed about the insurance coverage on your MMAs by talking to your bank or credit union and using online tools to verify your coverage.