When it comes to saving money, a money market account (MMA) is a great option. With an MMA, you can earn higher interest rates than a traditional savings account and have the flexibility to write checks or use a debit card. In order to open an account, you may need a minimum balance, and there may be limits on how many checks you can write or how much money you can withdraw each month. You may also be charged fees for ATM withdrawals. When shopping for a money market account, be sure to compare rates and fees before opening an account.
There are a few things you need to know before opening an account. Here’s what you should know about money market accounts in Utah:
You May Need a Minimum Balance
Many money market accounts require a minimum balance, so be sure to check with your chosen financial institution before opening an account. A money market account typically gives you a higher interest rate than savings or checking accounts, so it’s beneficial to keep a minimum balance in order to take advantage of the higher yield.
You May Be Limited in the Number of Checks You Can Write
Most money market accounts limit the number of checks you can write per month. Be sure to check with your chosen financial institution to find out what the check-writing limits are before opening an account.
You May Have a Debit Card Limit
Some money market accounts come with a debit card, which can be used to make purchases or withdraw cash from ATMs. However, there may be limits on how much you can spend each day or how much cash you can withdraw from ATMs. Be sure to check with your chosen financial institution to find out what the limits are before opening an account.
There May Be Limited Check-Writing Abilities
While you can typically write a few checks per month from your money market account, there may be limits on how many checks you can write and/or how much money you can withdraw each month. Be sure to check with your financial institution for any limits on check writing and withdrawals.
You May Pay Fees for ATM withdrawals
If you plan on using your debit card at an ATM, be aware that you may be charged a fee. Many financial institutions charge a fee for each ATM withdrawal, so it’s important to find an account that doesn’t have these fees. A money market account usually has a higher interest rate than a savings or checking account, which is why there’s often a minimum balance required. Figure out how much you can deposit into your money market account and be mindful of any future minimum balances that might be needed. Also, since many banks use tiered rates where the amount of interest earned depends on how much money you deposited, ensure that you’re taking advantage of the highest available rate.
Relax
A money market account has many benefits, one of which is that you can keep your savings separate from your transactions and still earn a higher interest. Plus, with deposits in a money market account being federally insured up to a certain amount, you don’t have to sacrifice security for the sake of earning more rewards. Consequently, it’s the perfect way to save up for larger expenses without having to worry about accruing too much interest.
Now that you know what to look for in a money market account, be sure to shop around and compare rates before opening an account. Keep an eye for news and press releases from the Federal Reserve to stay on top of what is happening in the market. This way, you’ll be sure to find the best account for your needs.
