So today we are going to be taking a look at how to open a money market account because this is one of the options many individuals go for. A money market account is the combination of a savings account and a checking account in one. He gives you the ability to have a debit card and checks and also gives a high savings rate just like in a savings account.
What is a Money Market Account?
A money market account is the third type of a demand deposit account which we have talked about in the previous article on this blog. A demand deposit account is an account that the user has access to withdraw funds at any time they like. Which is the reason why demand deposit accounts such as savings and checking accounts are used for day-to-day activities.
A money market account is the third type of demand deposit account just like I have mentioned above and it is a combination of a savings and checking account. This is because it gives you the high-interest rate of a savings account and also lets you keep a checkbook and a debit card to have access to your funds. So most people usually opt for a money market account instead of a savings or a checking account.
How to Open a Money Market Account?
Opening a money market account is not a difficult task to do it is very easy to do that within the shortest space of time. However, you need to take your time in opening a money market account so that you do not just open any account that you will end up hating. Which is the reason why I have listed all the steps on how to open the best money market account in this article today.
It doesn’t matter whether you want to open a money market account online or simply in-person the blue states will teach you everything you need to know on how to open a money market account.
One of the best ways for you to open a money market account is simply not just to settle for the first account to see. You need to shop around for the loss account provided by various banks so that you can compare them to get the best interest rates and others. Just as you will not buy the first car you are shown that is how you should not go for the first money market account you see.
Money market accounts and not the same across all banks so make sure to shop for the one with the best features. So that you can compare them later to get only the best of the best which is the one to move to step 2 with.
Gather your Documents
After you have successfully shopped around and have compared shops and you are chosen the one with the best features it is now time to gather the necessary documents you will use in opening the account. It doesn’t matter whether you want to open the money market account online or simply physically in the branch you need this document. The document you are going to be needing are listed as follows
- Driver’s license or state ID
- Birth certificate
- Social Security number
- Phone number
- Proof of address
These are all the documents that you are going to be needing if you are to open a money market account. Also, make sure to remove the credit freeze in your account if you have one because banks will not be able to pull up your credit report.
Open the Account
Now that you have all the necessary documents available the next step is to simply open the account. Is it is an online bank you need to head over to their online banking platform to open an account and upload your documents? For a physical Bank branch, you can still pick up by their customer care or head go down to the bank to open your account.
Fund the Account
Once the account has been opened or you ring opening the account you might be required to fund the account with cash. You can either physically deposit money if it is a physical Bank branch or you can transfer money electronically through a wire transfer. It is important to note that for an online bank the only option to phone it is through a wire transfer.
Set up Online Banking
If you are going to be using your account for making online transactions it is now time to definitely set up online banking. You can contact your customer care representative of the bank you should not know how to go about this.
Set up Direct Deposit
Anybody body that prefers to have their paycheck directly deposited to their account should set up the direct deposit to their account. So that instead of getting your paycheck mailed to you it should simply Be deposited in your account so that you can access it from there what are you doing?
How to Choose the Best Money Market Account
In choosing the best direct deposit account for a money market account we are certain things that you have to look at these are listed below:
- The number one thing you need to take a look out for in a money market account is the apy which is the interest rate for the account. This basically varies from one bank to another.
- You should also check if the bank has FDIC insurance, in case there is a problem with the bank your money is insured.
- Make sure to go for a bank that has a very low minimum balance requirement so that you will not run into problems if you want to withdraw your money.
- Not all money market account gives you access to checks and debit card submission to go for the one that does so.
These are the best way for you to choose and compare a money market account before deciding whether to go for it or not.
Is it smart to open a money market account?
If you want an account that gives you access to a high-interest rate and also allows you to have a debit card and shake then you should definitely go for a money market account. Because that will be the smart move on your part. However, if that is not what you want you can simply go for a checking or savings account.
What is the minimum amount for a money market account?
The minimum opening deposit of a money market account is $2500. But beyond this in some cases and banks, you are not expected to maintain a minimum balance as long as you’re able to provide $2500 to open the account.