Are there any fees associated with a money market account?
Curious about Money Market Accounts
Yes, money market accounts (MMAs) can have various fees associated with them, depending on the financial institution and the specific terms and conditions of the account. It's important to carefully review the terms and fee schedule provided by the bank or credit union where you are considering opening an MMA. Here are some common fees you might encounter:
1. Monthly Maintenance Fee: Some MMAs charge a monthly fee if you don't meet certain requirements, such as maintaining a minimum balance or conducting a minimum number of transactions. This fee can typically be waived by meeting the specified criteria.
2. Excess Transaction Fee: MMAs often have limits on the number of transactions you can make each month. If you exceed these limits, you may be charged an excess transaction fee for each transaction over the limit.
3. Minimum Balance Fee: If you fail to maintain a specified minimum balance in your MMA, the bank may charge a fee. This minimum balance requirement varies by institution and can be based on factors like the initial deposit or the average daily balance.
4. Check Fees: If your MMA offers checkwriting privileges, there may be fees associated with ordering checks or with each check you write from the account.
5. ATM Fees: If your MMA provides ATM access, you may be subject to fees for using ATMs outside the bank's network.
6. Wire Transfer Fees: Sending or receiving wire transfers to and from your MMA can incur fees. These fees can vary widely depending on the financial institution and the type of wire transfer.
7. Overdraft Transfer Fee: If you link your MMA to another account for overdraft protection, there may be a fee for each transfer made to cover an overdraft.
8. Inactive Account Fee: If your MMA remains inactive (no deposits or withdrawals) for an extended period, the bank may charge an inactive account fee.
9. Closing Fee: Some banks may charge a fee if you close your MMA within a specified period after opening it.
10. Paper Statement Fee: Many financial institutions encourage electronic statements and may charge a fee for paper statements.
It's essential to carefully read the terms and conditions provided by the bank and ask about any potential fees associated with the MMA. Additionally, be aware that fee structures can vary widely among financial institutions, so shopping around and comparing the terms of different MMAs is a smart approach to finding an account that aligns with your needs and preferences.