How to Find the Best Money Market Savings
- 1). Compare the rates. Money market savings accounts are offered by financial institutions online, locally and nationally. Bankrate.com is a website where you can compare money market accounts. When you arrive at the site, look at the top of the webpage. There are 11 tabs. The fourth tab is Checking and Savings. Select that tab and simply look to the top-right half of the webpage. You will see a section titled Location and Products with drop-down menus provided. Choose the appropriate option according to your preferences. Click the radio button that says update.
- 2). Decide how much to deposit after determining which institution is most suitable. Verify the minimum amount needed to establish the account. The required minimum amounts can vary from as low as $1 up to $100,000. Money market savings accounts requiring a $100,000 deposit are known as MMA Jumbo accounts. Usually, the more money you deposit, the higher the interest rate.
- 3). Familiarize yourself with the details. Be sure to ask about the balance requirements. Understand the restrictions, penalties and/or fees associated with the requirements. Confirm that your funds will be insured by the Federal Deposit Insurance Corporation. The FDIC insures depositors for up to $250,000 effective through Dec. 31, 2013. After December 2013, the FDIC insurance will return to $100,000 per depositor for deposit accounts.
- 4). Ask about the turnaround period for converting your funds into cash. Money market accounts are known for being liquid, meaning you can quickly convert these assets into cash. Does it take several hours to withdraw funds or a few days? Find out how quickly you can access your money.
- 5). Check with your local community bank or credit union regarding their rates. Community banks and credit unions often offer competitive rates. And all federal credit union deposits are insured by the National Credit Union Share Insurance Fund. If you don't ask, you'll never know how competitive they are.