A money market account operates in a similar way to a regular savings account. Differences you will come across include the minimum balance, interest rates and number of withdrawals allowed per month. You are also allowed to write three checks every month. All deposits into this account are protected by the FDIC or Federal Deposit Insurance Corporation in full. Here are some of the things you need to consider when you are choosing a money market account.
Any money saved in a money market account will earn you interest. For this type of account, banks compound the interest on a daily basis and pay it monthly. You should compare the interest rates between banks as they are not the same. Open your account with a bank that you feel offers you a good rate and make sure you include the online banks in your decision to have a broad spectrum to make your decision.
You can withdraw money at any time of the month. However, the frequency of times you can do so are limited. In addition, you will be charged for failure to maintain the required balance in the account. If you make withdrawals beyond what is allowed, the fee’s can increase and you could be in trouble with the bank.
Use your bank register to manage the different withdraws and deposits you make. A register is a vital tool with your ability to manage your money and properly save it. Thanks to new software programs, you can do your balancing on-the-go, making it easier to track your spending and manage your savings. With a money market account, you really want to limit how often you pull money out of the account or you will not be able to save it and get the higher interest rates.
This lists all the transactions you have made together with the fees charged by the bank. It also shows the amount of interest you have earned. Once you get a statement you are supposed to reconcile it with your own register.
Finding the right money market account will give you the best returns possible to have money correctly saved. Establish some goals in order to find the best bank that offers money market accounts.