savings

Rules of high-yield money market accounts

It's a question on so many of our minds: How do I turn my savings into something more without risking serious losses? As you explore different options for investing your earnings, a high yield money market account may be a great new home for some of your finances. Before you consider opening a new high-yield MMA, remember that earning more money comes with a price.

More yield equals more restrictions

While finding a high-yield money market account can reward you with an increased interest rate, your account terms can also weigh you down with rules and regulations. It's important to remember that money markets do not operate just like free checking accounts. MMAs carry additional restrictions including:
  • Withdrawal limitations -- Federal regulations restrict withdrawals from MMAs to six per month.
  • Checkbook closings -- Of those six monthly withdrawals, only three can be written checks.
  • Account minimums -- Many high-yield money markets force account holders to maintain a minimum balance.

If you fail to meet these guidelines, penalty fees can quickly overshadow any of your potential earnings.

More yield equals more savings

Despite these additional account rules, high-yield money market rates can put you on a path toward a stronger financial future. To better understand the amount of your MMA return, find out how your interest is compounded and use Bankrate's Compound Interest Calculator to estimate your earnings.

Ready to start your search? Consider Bankrate's Top Tier Awards for Consistently High Yields or use Bankrate's MMA Comparison Tool to find a high-yield money market account.

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