How to Close a Money Market Fund
Keeping your money safe while you earn a reasonable rate of return is important, especially if the money is part of an emergency fund. Funds that may be needed within the next couple of years should not be put at risk, and that is why a money market fund makes such a good choice for building up your cash reserves. But if you need to close that money market fund, it is important to do it properly. If you make a wrong move, you could be subject to fees and penalties.
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Instructions
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Make sure you have a copy of your most recent statement from the money market fund. Check the statement carefully to make sure that all recent deposits have been recorded and all checks have cleared. If you close the account before all checks have cleared, you will be subject to overdraft fees.
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Look on your statement for the mailing address of the bank, mutual fund company or brokerage service holding your money market fund. Also look for a customer service phone number, then call that number to ask how to close your account.
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Follow up the phone call by writing a letter to the firm holding your money market account. Even if the customer service representative offers to close your account over the phone, always be sure to follow up in writing.
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Provide clear instructions in your letter, including how you want the fund proceeds to be distributed. If you want a check sent to your home address, say so in the letter. If you want the funds transferred to another fund or sent directly to another bank, say that as well.
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Follow up in a few weeks if you have not received the funds. Call the customer service number on your statement and ask for the status of your account-closing request.
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