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Money market accounts are a type of savings account which often offer better interest rates than traditional savings account. They usually also provide the option to write checks. Despite these advantages, there might be times when you want to close a money market account, since they are also subject to strict regulations. This page is a guide on how to close a money market account.
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Financial adviser Patrick Munro explains the steps you should take in order to close an investment account. Munro says it's especially important that you get the appropriate paperwork to ensure your money goes where it should. Whether it is a money market or another type of investment account, Munro says having a solid paper trail is key.
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Step 1: Money Market Accounts Basics
- Money market accounts offer several advantages over traditional savings accounts, including the option to write checks and generally higher interest rates. They are subject to several restrictions, however, including a limit on how many checks you can write and how many withdrawals you can make.
Introduction
- If you have opened a money market account and want to close the account to access the money or move it elsewhere, make sure you understand the regulations for doing so. Most money market accounts can be closed at any time without punishments, but for some accounts, you might lose gained interest depending on when you close the account. If you are considering to open a money market account, consult Mahalo's guide on How to Open a Money Market Account for more information.
Step 2: Closing an Account
- You can typically close a money market account at any time, but you might lose some of its interest rate, depending on when you close it. Some banks will not allow you to get the interest gained for that month if you close the account in the middle of the month. There may also be other punishments or consequences associated with closing your account. Before closing a money market account, check the terms for your account. If you will lose some gained interest when you close an account in the middle of the month, wait until the end of the month to close it if you can do so.
Conclusion
- While you usually can close a money market at any time, you might lose some of the latest interest rate gained if you do so. Some banks do not reward you with the interest rate for that month if you close an account in the middle of the month, because the interest is usually posted in the end of the month.
