How To Open Up a Money Market Account

How to open up a money market accountA money market account may be foreign to you and that’s okay.  If you’re not familiar with the concept of a money market account, it’s very similar to a savings account.  The only difference is that you’re going to get a much higher rate and there will be restrictions on the account.  The restrictions may include withdrawal limitations and more.  The reason a bank is able to give you a much higher rate is because they know you won’t tap into this account on a daily basis for your everyday needs.

Find the best rate available

The first step you want to take in opening up your money market account is by finding the best rate available at the time.  Now, you have to keep in mind that money market rates change all the time and this rate won’t lock you in.

Head on over to the top ten money market rates for the day.  Look at how long the bank has been consistently in the top ten.  You’ll want to look at this because it will show you how often the bank changes their rate from a competitive rate to a lower rate.  You’ll find that some banks will offer a great rate and two weeks later they drop their rate 2%.  The longer the bank has been on the list, the better it is for you.

What do you want in an account?

All money market accounts are different.  Some accounts will have fees while others don’t.  You’ll want to make sure that you look at all the options.  Some of the options that you may find beneficial to you are:

  • ATM Cards
  • No minimum balance fee.
  • Withdrawal restrictions.
  • Telephone banking.
  • Bill pay.
  • Brick and mortar branch.

These are just a few of the options that you may come across.  If the bank has a great rate, it doesn’t necessarily mean it has great features and options for you and your money.

What do you need to open it?

When you’ve finally found that bank you like, find out what you need in order to open up that account.  Can you open your account online?  How much money do you need?  How do you sign the forms, etc.  Most of the time, this information will be on the website to make it easier for you.  Make sure you know what you need in order to open up the account.

Apply for the account

Before you apply, make sure that the bank is legit and also make sure the bank is FDIC insured.  If the bank isn’t insured, you may lose out on your deposit if the bank goes under.  Also, if you’re going to apply online, make sure that the information is encrypted.  The way you can check is by looking at your address bar on your toolbar.  If there’s a “lock” icon, you’ll be safe.

A money market account is a great account to look into if you’re looking for a short term option to make more money on your money.  Opening an account is no different than a savings account or CD.  Check with the bank you’re doing business with and they will be more than willing to help.

Disclaimer:This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

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