How to Open a Money Market Account

Opening a money market account is a simple process that provides many advantages over a regular savings account. For example, your money is extremely liquid. You can usually write checks or use a debit card to access your cash. In addition, money market rates are generally higher, especially if your balance is below $10,000. Follow the steps below to open your first money market account.

Instructions

Difficulty: Easy

Things You’ll Need:

• Money to invest

1. Shop for a financial institution. This step can be easily overlooked. However, the advantages of looking around first can mean a possible difference of a full percentage point in return. PayPal continues to be one of the highest yielding at 3.13% as of 20 March 2008 and only requires $1 to open (see resource section below for link). It comes with a debit card that pays cash back and is entirely online. However, there are many others that are also worth investigating.
2. Fill out the forms. Whether you open an online money market account or one at a physical branch, you'll have to provide certain information including: Name, Address, and Social Security Number.
3. Deposit funds. Depositing funds into a money market account usually can be done in several ways. If you are opening an account in person at a financial institute, you can have funds transferred from an account you have with them, you can write a check, or you can deposit cash. With an online account, you set up a link to a current savings or checking account at another institution. This method usually takes a few business days to get the money into your new account.
4. Watch you money grow. Money market accounts are great places to store your rainy day funds. You get a great return as well as easy access to your money should an emergency occur.

Tips & Warnings

• If your new money market account is for emergencies or another specific purpose, resist the urge to draw on it for unnecessary expenses.