Money market accounts can provide some of the best interest rates and returns available on the market. This is because money market accounts are designed to earn a higher yield than traditional savings accounts. Here are some tips on how to realize the potential of money market accounts.

1.Shop around. Banks compete fervently for business from money market accounts. You will notice that different banks will offer varying interest rates on money market accounts. Also, make sure you investigate the interest rates offered by credit unions. Credit unions can often beat the interest rates offered by banks.

2.Set aside a sizable chunk of capital for your money market account. The majority of banks and credit unions require that you maintain a minimum balance in money market accounts. Often, the amount of this balance exceeds the amount usually required in savings accounts. If you keep a large amount of principal in the account, your money will grow faster and you’ll avoid fees.

3.Link your money market account to your checking account. This way you can use it for overdraft protection. If you ever overdraft your checking account, funds will be transferred from your money market account into your checking account, thereby protecting you from those malicious overdraft fees.

4.Limit the number of withdrawals you make per month. Most money market accounts place strict regulations on withdrawals. Usually, banks restrict withdrawals to roughly six per month. If you exceed this number, you have to pay fees. It’s best to leave your money alone when it is accruing interest in a money market account.

5.Keep a close watch on the funds in your money market account. It’s good to have an idea on how much interest the money is accruing.
These tips will help you maximize the performance of your money market account. A little patience and wisdom can go a long way.