How To Open A Money Market Account: 5 Steps

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A money market account is a great way to keep your cash readily accessible while still earning a high yield. Think of it as an intersection between a checking account and a savings account: The money is there when you need it, but you’re ultimately hoping to leave as much in as possible to take advantage of an annual percentage yield (APY) that can rival that of the best high-yield savings accounts.

How to open a money market account in 5 steps

1. Shop around

Compare multiple options before applying for a new money market account. Here are some features to consider:

• APY: The best money market rates are often found at online banks.
• Minimum opening deposit requirements: Some money market accounts may have higher opening requirements than standard savings accounts.
• Monthly fee: You can find fee-free money market accounts, but many still charge a monthly fee. Make sure you can meet the requirements to avoid it so you don’t give your hard-earned money back to the bank. 
• Funds access: Many money market accounts come with check-writing privileges or a debit card, but not all. Consider how you’ll want to access your money before opening your account. 
• Insurance: This will be offered by Federal Deposit Insurance Corp. (FDIC) for banks or the National Credit Union Administration (NCUA) for credit unions.

2. Gather the required documents

You’ll need to present certain types of documentation during the application process. If the account will have any joint owners, you’ll need to include their information as well.

This information will likely include:

• Driver’s license or state ID
• Social Security number
• Phone number
• Address and proof of address

3. Apply online or in person

Once you have all your documents, you can fill out the account application online or go into a branch to open one in person. Online, this should typically take you about 5-10 minutes.
Keep in mind if you have a credit freeze in place for security reasons, you’ll need to have it lifted temporarily while opening the account.

4. Fund the account

Your options may include transferring money from another bank account or remote check deposit. For online transfers, be sure to have the account information handy for the bank from which you’re moving the money.

Opening a money market account at a bank branch gives you the additional options of funding your account by depositing cash.

5. Start using your account

Now that you’ve opened and funded your account, you should figure out how you’ll manage it. If you plan on managing your account online, set up online banking if you haven’t already and download the bank’s mobile app. This can make it easy to manage such tasks as checking your balance, depositing checks, ordering checks and transferring money between accounts.

And consider setting up automatic savings transfers to keep your funds growing. You can do this by splitting up your paycheck’s direct deposit or using other transfer features from your checking account.

Bottom line

Opening a money market account can be as quick and easy as any other deposit account. Shop around first to make sure you’re getting a good interest rate and all the features you want out of an account.