Comments on: What Is a Money Market Account?

By: Gregoree Mayberry

Gregoree Mayberry — Fri, 18 May 2012 12:26:23 +0000

Total U.S. money market mutual fund assets fell by $5.35 billion to $2.563 trillion for the week that ended Wednesday, the Investment Company Institute said Thursday.

Assets of the nation’s retail money market mutual funds rose $369 million to $889.88 billion, the Washington-based mutual fund trade group said. Assets of taxable money market funds in the retail category rose $390 million to $702.8 billion. Tax-exempt retail fund assets fell $17 million to $187.08 billion.

By: Nakia Wricks

Nakia Wricks — Fri, 11 May 2012 12:44:21 +0000

The interest rates are much better, your money is safe, and you can still access it whenever you need it. Why keep earning a tiny amount of interest when you could be doing a lot better just by moving your money? There are a ton of different MMA available at banks and institutions, so be sure to do your homework,

By: AlvinEstes

AlvinEstes — Mon, 12 Mar 2012 07:43:24 +0000

A money market is more or less a mutual fund that attempts to keep its share price at $1. Professional money managers will take your cash and invest it in government t-bills (aka “treasuries”), savings bonds, certificates of deposit, and other safe and conservative short term commercial paper. They then turn around and pay you, the owner of the money market, your portion of the interest earned on those investments.

By: Frank Head

Frank Head — Wed, 07 Mar 2012 06:37:37 +0000

I’ve been moving large sums of money between my bank accounts recently. I’m shuffling funds from my business account to my personal account to my high-yield savings account in an attempt to get each dollar in its proper place.

By: Randy

Randy — Wed, 23 Mar 2011 23:36:03 +0000

Good point, Nate. Banks typically pay interest on Money Market accounts using a tiered rate: higher balance = higher rate. Low balances normally earn a rate comparable to a savings account and may incur a low balance fee.

David, a few corrections for you. MMA and regular savings are governed by federal Regulation D. Both are “non-transaction” accounts, both have the same transaction restrictions:
An account owner can make no more than 6 “restricted” or “covered” transactions per month or monthly statement cycle, and those include ACH drafts, transfers to a checking account by phone or online banking, and in the case of a money market account, checks.
Unlimited transactions include ATM withdrawals, withdrawals done in person, transfers to checking done in person, loan payments at the same bank.

Furthermore, if account activity exceeds the 6 transaction limit three times in any twelve month period, the bank is required to put a stop to it – return the checks, or close the account, or convert the account to non-interest bearing. Banks that fail to comply with Reg D can face harsh consequences so typically they’ll discourage excess activity by charging a fee for it.

By: Nate

Nate — Thu, 17 Feb 2011 16:00:48 +0000

I know that at my bank the money market savings only has a slightly higher interest rate than the regular savings. Although it’s a good idea to move your money to a money market savings, I wouldn’t expect that much more money unless you got $50,000 or more in your savings and then it could start making a real difference.