Money Market Account?

Question

Hi, I was wondering if anyone could tell me the process of getting a Money Market Account?

Please and thank you.

Answer 1

A money market account is (generally) considered to be a savings type account.  They can be offered by banks or also by brokerage firms.

The main distinction between a saving account and a money market account is the means by which the company offering the account makes the interest that is paid to you.  Money market funds are normally placed into some sort of fund or other market based product to earn the money that is then paid to you.  Savings accounts, on the other hand, are used by the bank themselves for lending or other activities to make money.

One thing to consider is that money market accounts normally fall under Regulation E, which limits the number of electronic transfer out of a savings account to 6 per calendar month.  Just be careful with that.

Answer 2

Most major brokerage firms provide Money Market accounts for the clients with free credit balances.

Money Market accounts are not just simple deposit accounts, the brokerage firm usually re-invest the deposited monies into money funds that are available to their clients or the money can be used internally by the B/D.  

They are balances held in a segregated money account and are not considered to be used in the calculation of buying power for margin accounts, they are usually not available for direct ETF or ACH bank movements, although monies do move systemically between the money account and the regular cash accounts.

Money Market accounts usually pay higher interest than most saving accounts.

Most brokerage firms do not open money accounts for the general publics who do not have regular accounts with the firm.  

You can open a money market account with most mutual fund companies

Answer 3

When looking at MM's I would try and find one that is FDIC insured. Money markets with high interest rates may contain higher risk, and or is leveraged.

etrade has a FDIC backed money market.

https://us.etrade.com/

money rates

http://www.bankaholic.com/money-market/

Answer 4

It is just a different type of savings account.  There is a limit to how many times a month you can access you funds.  Just go to any bank branch