A Money Market Account is a type of savings account that usually earns a higher amount of interest than a basic savings account. The minimum balance for this account is often considerably higher than the minimum balance of a basic savings account. They can range from $500-$50,000.
When you deposit money into your Money Market Account, it earns interest just like a regular savings account. That interest is the bank's way of thanking you for letting them use your money. Banks then take that money and make other investments or loans.
The interest on a Money Market Account is usually compounded on a daily or monthly basis and paid on a monthly or quarterly basis. All savings accounts including Money Market Savings Accounts are subject to required withdrawal and transfer limitations. You are permitted to make no more than six transfers and/or payments to another account of yours with your bank or to a third party each monthly period.
You can deposit money into your Money Market Account at any time by check, direct deposit, or a transfer through Online Banking. You also have the option to close the account at any time and there is no penalty for doing so.
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