If you’re thinking about opening a money market account, you’re probably wondering if there’s a minimum balance required to start. The answer is yes – but the good news is that some banks will let you open a money market account with a balance as low as one dollar.
Money market accounts offer consumers competitive interest rates on their investments. However, these offers are linked to the amount of money you keep in your money market account. So, if you start your account with, say $500, you will get a lower interest rate than if you give the bank $100,000. Of course, most of us don’t have an extra $100,000 lying around so we’ll be dealing with smaller figures and hence lower interest rates. Nonetheless, you will still be making money on your investment.
Therefore, opening a money market account doesn’t require a ton of money. The only money market accounts that require major cash are the one that offer higher interest rates. So basically just about anyone can afford to open a money market account. However, there are requirements for maintaining a certain balance in your account – should you go below that balance you will be required to pay a penalty. You will also be penalized if you perform more transactions than you are allowed on this account. Most banks will let you only take out money three times per month, and write three checks. Again, if you go beyond that allotment you will more than likely have to pay a fee.
Before you open a money market account, be sure to sit down with your financial advisor or bank representative to go over all aspects of your money market account, so that you can determine what the right option is for you. After all, this is your money and your future we’re talking about here, and you need to know what’s best for you.