How To Open a Money Market Account: Step-by-Step Guide

Eva-Katalin / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Opening a money market account is an easy process. Once you choose a bank or credit union that offers what you’re looking for, you can apply online or in person and fund your account. Here’s a detailed look at how to open a money market account for beginners. 

Step 1: Compare Top Accounts

Research banks and credit unions to find the best money market accounts with high APYs, low fees and easy access. Use comparison tools or reviews to evaluate your options side by side to find the best account for you.

Step 2: Choose a Bank or Credit Union

Pick a bank or credit union that is FDIC- or NCUA-insured to protect your deposits up to $250,000. Look for one with a good reputation, great customer service and an easy-to-use mobile app. 

Step 3: Gather Your Info and Apply

You can apply online or visit your local bank branch. When applying, you’ll have to provide your name, address, Social Security number and a government-issued ID like a driver’s license or passport.

Step 4: Fund and Manage Your Account

Make your initial deposit — most money market accounts have a minimum opening balance. From there, you can set up automatic transfers to grow your balance. Be sure to review the account periodically so you don’t dip below the minimum balance. 

What To Look for in a Money Market Account

You should be on the lookout for these key features when you choose your money market account. 

Annual Percentage Yield (APY)

The higher the APY, the more interest your savings will earn. Always compare APYs to find the best return on your deposit.

Minimum Balance Requirements

Some money market accounts come with minimum balance requirements. Depending on the requirements, you may determine that some accounts aren’t feasible for your situation.

Fees

As with all bank accounts, the fees tied to a money market account matter. Look for an account without a monthly maintenance fee or ATM withdrawal fees.

Access

Most money market accounts come with a debit card. Consider institutions with ATM availability, as well as a user-friendly app.

Insurance

Choose a bank or credit union that insures your funds. Check if the bank or credit union is FDIC- or NCUA-insured. This means funds up to $250,000 per depositor will be protected via insurance.

Money Market Account vs. Fund? What’s the Difference?

They sound similar, but money market accounts and money market funds are not the same. Here’s how to tell them apart.

Feature	Money Market Accounts	Money Market Fund Accounts
Offered by	Banks and credit unions	Brokerage and investment firms
Insured	Yes	No
Interest	Pays interest	No — invests in securities
Best for	Savers	Investors

• Choose a money market account if you want insurance and interest on your funds. 
• Choose a money market fund account if you want brokerage services and some returns on an investment portfolio. 

Top Mistakes To Avoid With Money Market Accounts

Money market accounts are a great investment option, but they have some downsides. Here’s a quick look at some common pitfalls to dodge:

• Falling below minimum balance: Dropping below the money market account minimum balance can trigger monthly fees.
• Ignoring withdrawal limits: Exceeding the six-withdrawal limit may result in fees or account restrictions.
• Overlooking fees: Watch out for monthly maintenance fees or excessive transaction fees.
• Not checking the fine print: Before opening the account, read the fine print to avoid unnecessary fees. 

Top-Paying Money Market Accounts Right Now

Always compare APYs and balance requirements to find the best money market account for you. Here’s a breakdown of some popular options:

What You Could Earn in a Money Market Account

A money market calculator can help you estimate earnings, but this chart gives a quick look at how your deposit could grow over 12 months.

Deposit Amount	3.50% APY	3.80% APY	4.25% APY
$1,000	$35	$38	$42.50
$3,000	$105	$114	$127.50
$5,000	$175	$190	$212.50
$10,000	$350	$380	$425

Final Take

A money market account is a smart savings option if you want to earn interest while still having access to your funds. Just be sure to:

• Compare APYs to find the highest return for your deposit.
• Watch for minimum balance requirements to avoid fees.
• Choose an FDIC- or NCUA-insured institution to protect your money.
• Look for easy access, including ATM availability and a strong mobile app.
• Check the fine print for withdrawal limits and hidden fees.

Dawn Allcot contributed to the reporting for this article.

Data is accurate as of July 28, 2025, and is subject to change. All fees and rates are subject to change at the bank’s discretion.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

Share This Article: