To get the highest money market rates, the account owner must leave the principal deposit, and all interest earned, in the account. Even the smallest balance required to earn interest should be maintained. Account owner must shop around at regular intervals to check the current rates. Funds may need to be moved to a new account to make sure the owner keeps serving the highest money market rates available.
The highest rates offered to the money market accounts are listed in the ads and account paperwork, as the annual percentage yield (APY). To earn the APY, the account owner leaving both the initial deposit and any interest earned on the account. This allows the interest to also earn interest. This is known as compounded interest.
Often a bank or credit union requires a minimum balance to open a money market account. Normally, this balance is also maintained to earn interest on the account. The account owner should check for any minimum balance requirements prescribed by Bank or to ensure that the account owner continues to serve the highest money market rates as possible.
Additionally, the account owner to follow all the rules and federal law. This will help to ensure that no charges on the account. Any charges will affect the owners the opportunity to earn the highest money market rates advertised for the account. Such costs may include monthly fees, transaction costs, and Regulation D fees.
If a minimum balance is required and the account falls below that balance, some banks and credit unions charge a fee in addition to not paying interest on the account. Account owners can usually get access to money market funds with a debit card or check. Banks and credit unions can charge fees when these cards, and checks are used. Since money market accounts, savings accounts, they are subject to Regulation D of the United States.
Regulation D limits the amount of transactions when the account owner is not present, to six per month. Only three of these monthly transactions may be checks. Account owners who exceed these limits will be charged Regulation D fees. These fees can reduce lines and as a result, the account owner earns less interest. If anyone has spare capacity, the account will not earn the stated APY.
Since money market rates may change, account owners should continue to monitor other banks and credit unions to see the highest money market rates being offered.
Normally, money market accounts can be closed and account owners can move their funds for a new account without penalty. Account owners should only move funds after any interest has been transferred to the account.
Highest Money Market Rates
