How to Open a Money Market Account

By TheOnlineBanks.com

Money Market Account

The bank invests the money you deposit into your money market account for you, and your money is protected up to the FDIC insured limits.

Comparison Shop

Surprisingly enough, even money market accounts offer a variety of features and terms to choose from. Decide how often you plan to write checks from your money market account, and then narrow down your selections to those accounts that have your minimum checking writing requirement.

Compare Account Fees

Look at Minimum Deposit and Minimum Balance Requirements Most money market accounts can be opened for between $500 and $2,500 initially, and many will require the same amount for a minimum balance or you will pay penalties or maintenance fees. Once you’ve found a few banks that offer money market accounts to meet your needs, call and ask them to mail you application forms and full account details. If you already have other bank accounts with a specific bank, you can often open a new account over the phone. How to Choose a Money Market Account

If you’ve decided to use a money market account to benefit from higher interest rates and to avoid the risks associated with other investments, your next decision is deciding which money market account to open. Money market accounts are just like savings accounts in that the money you deposit is insured by the Federal Deposit Insurance Corporation (FDIC), so even if the bank holding your money goes bankrupt – the government guarantees you will not lose your money. This government guarantee makes Money Market accounts the safest option for investing money with a guaranteed return and the ability to access your money whenever you want.