As you might already know, a money market account can be a good choice if you are looking for a safe place to keep some of your money. Money market accounts often offer higher interest rates and can help your money grow more quickly than a traditional bank account, but you probably already know that not all money market accounts are created equally. This means that it's obviously smart to compare money market accounts before you choose one and deposit your money into it, but you might not know which things to compare so that you can make the right choice.
To help ensure that you end up with the best money market account for you, make sure that you compare these four things between various account options. Then, you'll know what to expect and can choose a money market account that is right for you.
1. How Much Money Do I Need to Deposit to Get Started?
Many checking and savings accounts only require a minimal deposit in order to be opened, but the same is not true with money market accounts. In many cases, you have to have several thousand dollars in order to open one of these accounts. To ensure that you have enough spare cash to get started, it's a good idea to compare the minimum opening balance between different accounts.
2. How Much Money Do I Have to Keep in My Account at All Times?
Even though you might have money to put in your account now, you might want to be able to access it later. Most money market accounts have a minimum balance that you are expected to maintain, but the requirements vary from provider to provider. If you want to be able to withdraw your cash whenever you want to, you will probably want to compare these requirements to choose one that you feel comfortable with.
3. How Many Transactions Can I Complete Each Month?
Even though you might not be planning on using your money market account for spending cash now, there is a chance that you will need to later. Unfortunately, many money market accounts have limits on how many transactions you can have each month. Look for a higher number if you want more freedom, but remember that this can make it more tempting for you to dip into your funds.
4. What Fees Can I Expect?
The great thing about money market accounts is that they don't usually come with a lot of fees. However, even smaller fees can add up, so make sure that you compare the common, standard fees between each account option to choose the most affordable one.
Putting your money in a money market account can be smart. However, you probably want to take your time in choosing the best money market account that you can. Luckily, asking these four questions and comparing these four things between account to account can help you make the right choice.