Can you add money to your money market account?
Yes, it is possible to add money to a money market account balance. However, most financial institutions limit how many withdrawal and transfer transactions you're allowed each month. There are no limits on deposits, so you can add money to a money market account regularly.
At Credit Union of Southern California (CU SoCal), we make it easy to open a money market account!
Call 866.287.6225 today to schedule a no-obligation consultation and learn about our mortgages, home equity lines of credit, auto loans, personal loans, checking and savings accounts, and other banking products. As a full-service financial institution, we look forward to helping you with all your banking needs.
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What is a money market account and how does it work?
Like other bank accounts, you’ll simply make deposits into your money market account as often as you’d like using your credit union or bank’s deposit services. However, money market accounts may have rules about withdrawals.
Prior to 2020, the Federal Reserve created a limit of six withdrawals from certain types of accounts. Although the requirement was removed, some credit unions and banks have kept the restrictions in place. Therefore, before you open a money market account, speak to a representative at the financial institution of your choice about the withdrawal rules and fees.
If a transaction limit is in place, then you may not be allowed to withdraw money or make payments more than six times a month from a money market account by check, debit card, draft, or electronic transfer.
Before opening a money market account, learn more about how money market accounts work.
Advantages of money market accounts
- Higher interest rates. Money market interest rates are almost always higher than checking and savings accounts interest rates. This is how financial institutions reward consumers for the larger minimum balance requirement.
- Full access to money. You can access your money market account 24/7 just like any other savings account.
- Check-writing and debit card. Most financial institutions offer a debit card and checks with a money market account. Be sure to ask if there is a limit on the number of withdrawal transactions each month.
- Low-risk investment. While the interest rate earned on a money market account may fluctuate slightly, the money you have in the account cannot be lost due to economic factors.
- Deposit insurance. All money market accounts are insured. If the account is held at a bank, it is insured by the Federal Deposit Insurance Corporation (FDIC). A money market held at a credit union is insured by the National Credit Union Administration (NCUA)
Are money market accounts worth it?
Money markets are ideal if you need to keep your money liquid. These accounts tend to offer higher interest rates than regular savings accounts, and lower interest rates than certificates of deposit (CD). They include tiered interest rates, meaning the larger the balance you maintain the more interest you earn.
While you cannot lose the balance of a money market account, penalty fees may be charged for not meeting balance and withdrawal requirements. Before committing to opening a money market, be sure you’ll be able to adhere to the account requirements.
Are money market accounts safe?
Yes, money market accounts are
safe and insured. Accounts held at a bank are insured by the
Federal Deposit Insurance Corporation (FDIC). Accounts held at a credit union are insured by the
National Credit Union Administration (NCUA).
Both the FDIC and the NCUA insure money market accounts up to $250,000. It’s important to note that the deposit insurance amount of $250,000 is provided per depositor, per FDIC-insured bank, per ownership category.
How to open a money market account
Opening a money market account is easy, just follow these five steps:
- Compare rates. Check around and see where you can get the highest interest rate. Credit unions offer some of the best rates on money market savings accounts.
- Gather necessary documents. This can include a government-issued ID, such as your driver’s license, your social security number, and proof of address (such as a utility bill).
- Fund the account. Once you’ve been approved for the account, you’ll need to fund it. How much you deposit is up to you, if you meet the minimum opening balance required by the financial institution.
- Access your account online. If you open a money market with an online bank, then creating an online account is likely part of the process. If you open an account at a credit union or bank, then be sure to create your online account so you can manage your money anytime and anywhere you go.
- Enable direct deposit. If your employer provides paycheck direct deposit, you may want to have all, or part of your earnings direct deposited into your money market. You can transfer funds out of your money market into your checking account to cover your bills and expenses, while keeping money in your money market. This is a great way to boost your savings.
Why savvy consumers choose CU SoCal
For over 60 years CU SoCal has been providing financial services, including mortgages, Home Equity Loans, HELOCs, car loans, personal loans, credit cards, and other banking products, to those who live, work, worship, or attend school in Orange County, Los Angeles County, Riverside County, and San Bernardino County.
Please give us a call today at 866.287.6225 today to schedule a no-obligation loan consultation with a CU SoCal Member Services specialist.
Get Started on Your Money Market Account Today!