In the United States, money market accounts operate like savings accounts because the government typically insures the deposits. If an individual has a money market account and the bank undergoes bankruptcy, he will not lose his money. The best money market accounts carry this benefit. When choosing the best money market account, there are a number of other factors an individual should consider.
Money market accounts usually have a limit on how many withdrawals one can make in a month. If you intend to use your money market account often, especially for withdrawals, select one that offers a high number of monthly withdrawals. This is particularly important if you intend to use the money market account like a checking account. The best money market accounts allow you the withdrawal limit you require, but guard you against over-the-limit withdrawal fees.
In many cases, a regular savings or checking account does not require the individual to deposit a large amount of money to open or maintain the account. Conversely, if a money market account holder wants to prevent minimum balance fees, he has to maintain a higher minimum balance than a traditional savings or checking account requires. When choosing the best money market accounts, it is important to have enough money to maintain the accounts. If you feel you are incapable of staying above the required minimum balance, you can opt for a high interest savings account until you have amassed enough money to maintain the minimum balance.
The fees associated with a money market account typically derive from exceeding the monthly withdrawal limit and not keeping the required minimum balance. Money market accounts may also include fees for writing checks, maintenance or monthly service fees, and ATM fees. When selecting the best money market accounts, it is imperative that you consider how you plan to use the accounts, the type of fees attached to the accounts, and how much you can afford to spend on these fees.
Money market accounts generally offer higher interests rate than traditional savings or checking accounts. This is the pivotal reason why many individuals open money market accounts. When choosing the best money market accounts, compare all available options. The best money market accounts allow maximum interest on your savings while minimizing how much you pay in fees.