Posted by forex at 1:46 AM
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1. Decide what features you want. Bank money market accounts come with free checks and the ability to transfer money electronically to and from your local checking account, but the number of monthly withdrawals may be limited.Broker money market accounts come with unlimited check writing and a VISA or MasterCard debit card. Most offer electronic money transfers as well. If you get a money market account with a broker, you will in effect be opening a brokerage account linked to the money market account where all uninvested cash is automatically swept.
2. Shop around. Yields vary considerably. There are several sites, like Bankrate.com, that list the best money market accounts nationally.
3. Beware of bait and switch. Some banks advertise a high rate for a while and then drop it, hoping that you won't bother to move your money elsewhere. It's hard to know in advance how long a high rate will last. Either be prepared to hop from bank to bank or open several accounts instead.
4. Go to the website of the institution you select. They will walk you through the account opening procedure. You will need to print, sign and mail an account agreement and a signature card if you want checks. Most providers have toll-free numbers for any questions you may have. Online setups vary from bank to bank. If just opening the account is a pain, chances are using it will be equally frustrating.
5. Set up an EFT (Electronic Funds Transfer) link between the money market account and the checking account at the local bank so that you can transfer money electronically. The additional steps are worth it in case you need money in a hurry.