How to Invest in a Money Market Account

With interest rates low, banks are paying little interest on checking and savings accounts. Money market accounts give you the ability to earn higher interest on cash that you don't want to put in long-term investments such as stocks, bonds and real estate.

Difficulty: Moderate

Instructions

Things You'll Need:

• Financial Calculator
• Internet Access
• Bank Account
• Computers
• Personal Financial Software

1. Familiarize yourself with money market accounts, or MMAs.

2. Know that the minimum balance of an MMA is typically steep. Many banks require a minimum balance of $15,000 or more. You'll pay penalties if the balance drops below that level.

3. Get on the Internet and shop for the best rates and terms. Sites such as BankRate.com offer relevant information on MMAs and other types of accounts.

4. Identify accounts that seem to match your financial goals and your immediate needs.

5. Find out how many checks you can write each month without paying a penalty.

6. Find offer small cash bonuses to new account hoout how many withdrawals you can make each month without paying a penalty.

7. Ask whether you can gain account access with an ATM card.

8. Determine whether any special perks come with the card. Some companies lders.

9. Visit the bank and set up the account. Some banks will allow you to open the account via mail. Others have Internet sign-up programs.

Tips & Warnings

• Consider dealing with the bank you already do business with. It might offer special benefits if you open an MMA there.

[dorkmo]

on 9/30/2006 Dont worry about Minimums, Direct MMAs on the internet dont have minimuns or fees usually. there are alot of direct banks now. they are all competing pretty hard right now so they all have very good rates.