To Your Health
August, 2008 (Vol. 02, Issue 08) |
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Interest from most money market accounts is compounded daily and paid monthly. Be careful when choosing a money market account because interest rates can vary significantly from bank to bank.
Another thing to be mindful of is that you might find that particular money market accounts will give you a higher interest rate based on the amount of money you have in the account. Always check with the bank to see how interest rates might change.
Just like a basic savings account, money market accounts let you withdraw your money whenever you want. Keep in mind you usually are limited to a certain number of withdrawals each month. Banks might charge you a fee if you don't maintain a certain balance in the account. They also might charge a fee for every withdrawal in excess of the maximum the bank allows each month.
To be safe, when considering opening a money market account, ask questions about the following:
- Are there fees and service charges for using the account?
- What are the minimum balance requirements?
- What is the interest rate paid on your balance?
Stanley Greenfield, RHU, is a financial consultant and health insurance underwriter in Jacksonville Beach, Fla.
