Too often in the recent economy I have heard people saying that money market accounts at their local bank are paying virtually nothing and there is no point in putting any money in them. While it is certainly true that many money market accounts are paying very small amounts, that is no good reason to avoid them altogether. The truth is banks can’t payout huge amounts on things such as money market accounts and certificates of deposits because interest rates are at zero right now.

Despite the fact that the Federal Reserve has placed interest rates at zero to try to stimulate the economy and the savings accounts on average are quite low, there are still ways to benefit from money market account promotions and special rates. In these times where banks need liquidity on their balance sheets they need these money market accounts opened more than ever, so they will continue to run some specials. Many banks are now offering rates as high as 2.5% or so for a limited time as an introductory rate. In fact, if you particularly good at staying ahead of the game you can typically move your money around and continue to get introductory rates at one or more of your local banks.

While 2.5% may not seem like a whole lot on the surface I continue to wonder why people scoff at the notion of putting their money in a savings account that will earn them this money. Simply put, there is no free lunch in this economy and if you want to make a little bit of cash while still saving up money, finding the best money market rates is still very important. Just because rates aren’t high by historic standards mean you should put your money under the mattress at home. Find an FDIC insured bank with a decent money market yield and help grow your money slowly over time.