What is a Money Manager Account
A money manager account is a high yield savings account. It is a great savings option for members who normally maintain higher balances in their savings but still want the flexibility to make withdrawals at any time. Generally, money manager accounts will earn you a higher dividend rate (the interest a credit union will pay you for keeping your money in the account) and the rate may increase depending on your balance.
How Does a Money Manager Account Work?
A money manager account is quite simple. Once opened and funded, you being accruing interest based on the account specifications. You may want to do a little research to find out how your dividends are compounded and credited. Also, if the dividend rate is dependent on the balance in your account, you’ll want to find out what those tiers are. If you don’t need the money right away, let it sit there and grow! Since this isn’t considered a term account, generally you can withdraw the money any time you need it.
At HFS FCU, we have a tiered system for our Money Manager Accounts and any withdrawals must be at least $250. Dividends are compounded and credited monthly.
What are the Advantages of a Money Manager Account?
There are definite advantages to using a money manager account, for the right individual.
- Higher balances earn more – the dividend rates are higher than a savings or checking account with no additional fees
- No fixed maturity – deposit and withdraw funds when you want
- Dividends paid monthly
What are the Disadvantages of a Money Manager Account?
In order to take advantage of the perks of a money manager account, you’ll want to be mindful of a few things:
- Dividends may not begin accruing until you reach a specified balance. At HFS, the minimum is $2,500.
- There may be a minimum amount you’re able to withdraw at a time. At HFS, members must withdraw at least $250.00.
- Requires a larger amount to open and maintain the account
Difference Between Money Manager Accounts, Savings Accounts and Share Certificates?
The main differences between a money manager account, savings account, and share certificate are:
- The dividend rates you’ll earn on your account balance
- Minimum dollar amounts you may or may not be required to deposit
- Required terms you may or may not be required to keep your funds in an account for to earn the stated dividend rate
At HFS FCU, a Savings Account (or Regular Shares Account) is the basis for your membership. It is the first account you open to become a member and it is a perfect account for saving for a rainy day whether you are 1 or 100. A Regular Share Account will earn you modest dividends but provides great flexibility to move money whenever you please.
Members who maintain higher balances in their savings account may want to consider a money manager to earn more. Funds are still easily accessed, but there are minimum withdrawal amounts and require a large initial deposit.
A share certificate also provides the opportunity to earn higher dividend rates on your funds, however, funds are locked into the account for a specific amount of time (although funds can be released by paying a penalty). At HFS, interest is compounded and Share Certificates have a minimum balance requirement of $2,500 with terms ranging from 6 to 60 months.
Money Manager Account Interest Rates
The HFS Federal Credit Union website provides the most up to date information and dividend rates for our Money Manager Accounts.
Frequently Asked Questions
How Safe Are Money Manager Accounts?
Money Manager Accounts, like all Savings Accounts at HFS Federal Credit Union are federally insured by the National Credit Union Administration (NCUA).
What Should You Use a Money Manager Account for?
You should use your money manager account as a savings tool. Use this account to save your money, but in a pinch, you’ll still be able to make a withdrawal if you need it. Increase your earning potential while enjoying the flexibility!
Open a Money Manager Account with HFS FCU
Reach your savings goals with an HFS Federal Credit Union Money Manager Account. Visit us at any of our 6 branch locations and speak to a New Accounts Specialist to open your Money Manager Account today.