Curious about Money Market Accounts

Yes, money market accounts (MMAs) typically have restrictions on the number of transactions you can make within a specific time period. These restrictions are in place to differentiate MMAs from checking accounts, which are meant for frequent transactions, and to comply with federal regulations. The specific limits on transactions can vary depending on the financial institution and the type of MMA, but here are some common guidelines:

1. Monthly Transaction Limits: Many MMAs have a limit on the number of withdrawals or transactions you can make per calendar month. This limit is often set at six transactions, although it can vary. Transactions that count toward this limit may include withdrawals, transfers to other accounts, and certain types of payments.

2. Limited CheckWriting: MMAs may offer checkwriting privileges, but the checks you write from the account are typically counted as part of the monthly transaction limit. If you exceed the allowed number of checks or transactions, you may incur fees or have your account converted to a checking account.

3. InPerson Transactions: Some transactions made in person at a bank branch or ATM may not count toward the monthly limit. However, it's essential to check with your bank or credit union to understand their specific policies.

4. Exempt Transactions: Certain types of transactions are often exempt from the monthly limit. These can include inperson withdrawals, deposits, and transfers between accounts that you own at the same financial institution.

5. Electronic and Wire Transfers: Electronic transfers initiated online, by phone, or through mobile banking may be included in the monthly limit. Wire transfers are typically not counted as part of the limit.

6. Overdraft Protection Transfers: Transfers made to cover overdrafts in your checking account are generally not counted toward the limit.

It's crucial to review the terms and conditions of your specific MMA to understand the transaction limits that apply. Exceeding these limits can result in fees, account restrictions, or the conversion of your MMA to a checking account.

If you anticipate needing to make more than six transactions per month or require frequent access to your funds, you may want to consider other account types, such as a traditional checking account, that do not have the same transaction limitations.