We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

How do I Open a Money Market Account?

By N.M. Shanley
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A money market account is an interest-bearing deposit account. To open a money market account, you can visit a branch of your local bank or credit union. Some of these financial institutions also allow accounts to be opened online. In the United States, a signed account application, valid identification, a social security number, home address, phone number, work address, and minimum opening deposit are needed to open a money market account. A background check is also required.

A United States law call the Patriot Act requires certain types of identification to open a money market account such as a valid driver's license, valid passport, or resident alien card. If you visit a financial institution to open a money market account, this identification must be presented to the staff member who is opening the account. To open a money market account online, information from the valid identification is typed in and sent to the financial institution over the Internet.

The Patriot Act also requires an Office of Foreign Assets Control (OFAC) background check before a money market account is opened. When a bank or credit union opens a new account, the account owner's information is checked against the OFAC database. OFAC background checks are completed electronically for accounts that are opened online. The OFAC database includes names of known terrorists and other persons and businesses that may not open bank accounts in the United States.

The minimum opening deposit is determined by the bank or credit union. In general, this is also the amount needed to continue to earn interest on the account balance and avoid paying a monthly service fee. Interest is most often paid monthly, but quarterly interest payments are also possible. Money market account interest rates are generally not guaranteed and may change at any time.

When an account is opened, important disclosures are provided. This information should include when an account can be closed and how interest will be paid. Money market accounts can usually be closed at any time without any loss of the principal deposit and credited interest. If an account is closed before the latest interest payment is credited, this interest may be lost. Some financial institutions will credit a partial interest payment prior to closing the account, but others will not.

In the United States, money market account disclosures will also include information about a federal regulation called Regulation D. Regulation D allows only six transactions per month without the account owner present. These withdrawals include checks, phone transfers, debit card transactions, electronic transfers, and automated clearing house (ACH) payments. Withdrawals completed in person, such as at a branch or at an ATM, do not count toward this monthly limit.

It's important to count transactions that fall under Regulation D. Of the six monthly Regulation D transactions allowed, only three of them may be checks, debit card transactions, or payments to third parties. Banks and credit unions usually charge a fee if the account owner exceeds these monthly withdrawal limits.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.