Money Market Accounts

  • Window Shop- Banks are always trying to outdo each other for new business, interest rates and terms will vary from bank to bank, as will the bonuses that they will offer. Look at as many offers as you can and pick the best. Credit Unions are also worth looking into, and quite often they offer the best rates.
  • Invest Big- While interest rates for money market accounts are higher than saving accounts, these are still considered conservative investments, if you want to earn a lot of interest, you need to invest a lot of money. Banks and institutions that offer the accounts, usually require large minimum deposits.
  • Link your money market account to your checking account- Maybe not a great idea for your money making account, but this is a good safeguard against accidental overdrafts. Banks do charge huge overdraft fees.
  • Avoid withdrawals- The whole point of a money market account is to earn interest; if you withdraw frequently, it sort of defeats the purpose. Banks also typically limit the number of withdrawals you can make to about six per month. Should you exceed that, there will be stiff penalties charged.
  • Monitor your earnings- While it’s best to leave the money alone, it is also a good idea to keep an eye of how much it is earning, and whether or not you are getting the yields you expected.