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With the interest-bearing checking account fading into memory and traditional saving accounts not paying much more interest than the bed bugs under the mattress, many consumers are looking for other places to set aside some money that will earn them a little interest while still giving them access to a few withdraws. A money market account is a fairly simple option where you can earn some pennies on your dollars while having the ability to write up to three checks every month.
Money market accounts often require a higher minimum balance than a traditional savings account, but your money is still insured, you can write those three personal checks, and the interest paid is usually a little higher than a traditional savings account would pay. In January 2013, the top U.S. money market accounts were paying around 0.9% APR. This amount does fluctuate, and you have to be aware of minimum balances and fees to be sure you benefit from this type of account. The following four steps will help you safely withdraw your money from a money market account.
- Find out from your bank exactly how many times you can withdraw money from your money market account per month. Most sources say three, while others say anywhere from three to six. You can get this information from your bank by going to their website or visiting them in person, but you will want to know the exact rules for your specific account before you start withdrawing your money.
- Once you have checked with the bank and know exactly how many withdraws you can make per month, check your account to see how many times you have already withdrawn that month. You definitely don’t want to exceed the maximum number, nor do you want to incur a penalty for bringing your account below the required minimum balance.
- Find out if you can transfer money from your money market account to a checking account via the Internet, and whether this will count as a transfer or as one of your limited withdraws for the month. This way you can transfer the money without having to leave your home. Transfers via telephone may also be possible.
- One of the advantages to a money market account is being able to write personal checks from the account. You usually can write three checks per month, although you will want to verify that number with your bank, and make sure what kind of transfers and withdraws count towards that limit.
Money market accounts are usually a step above savings accounts if you have the minimum deposit and you carefully consider the fees. Money market accounts administered by banks are also FDIC insured, which is definitely a better deal than you will get from your mattress. Remove that money from the mattress, get all the facts, and shop around for the best rates, and you can put your money to work for you and get a better night’s sleep!