Money Market Checking Account Not So Ordinary

A checking account is a kind of deposit account that provides quick access to your funds whenever the need arises. It is the kind of account that most people go for when they have no intent of saving. There is a unique kind of account called a money market checking account. It breaks past some barriers that a normal checking account has, but is restricted by others owing to the kind of account it is. A money market checking account is the bridge between a savings and a checking account. A savings account will offer you interest on your funds, but limit your withdrawals, while a checking account will give you withdrawal freedom, but deny you interest. A money market checking account offers you both the freedom to make withdrawals, while still offering you interest on your money. So how does it work?

First thing you need to do is to open a money market account with a bank or credit union. For your opening balance, you need to have $2500 saved up. The figure is set so high because of the nature of the account, and because the money gains interest over time. There is no maximum limit when opening this account so you can deposit as much as you want.

A money market checking account has the characteristics of a checking account, in, which there is some freedom to make withdrawals. It is important to emphasize at this point that this freedom is limited. For your invested funds to attract interest, they need to remain in the account, and that is the reason you get withdrawal restrictions. Depending on the financial institution in question, this could be three to six times in a period of one month. You also get the freedom to write checks as well, but you only get three chances to do this.

A money market checking account is perhaps not the best kind of account to rely on for your recurring financial needs. Considering you only get few opportunities to make a withdrawal (this may or may not include the withdrawals you make via an ATM), it best caters to the mid-month emergencies that are rare. In any case, you want your money to grow, and constantly withdrawing it undermines that.

Unlike some checking accounts where you can withdraw all the money, a money market checking account requires that you leave some balance behind. The minimum for said balance is usually between $500 and $1000. Should you go below this, you are charged some hefty fees.

Finally, an advantage that a money market checking account has over a regular checking account is the absence of monthly fees. This makes it easy to maintain the account since all you do is deposit and watch it attract interest as the months go by. It is the best checking account to have, especially for those that make little to no withdrawals every month.