How do I Get the Best Rate on a Money Market Fund?

A money market lets you keep your money safe.
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Money market accounts have many uses, from helping workers build emergency funds they can rely on to saving up enough money for a major purchase. But no matter what the reason for opening a money market account, you need to get the most for your money. Boosting the rate on your money market fund could yield a great deal of extra money, giving you an excellent return on your investment right from the start.

Step 1

Contact your own bank and ask about the money market rates they offer. Also contact other area banks and credit unions and compare their rates with the one at your own bank. Money market rates vary quite a bit, so it is a good idea to shop around as much as you can.

Step 2

Compare the rates you find locally to the rates available online. Internet banks often offer higher rates on money market funds and savings accounts due to their lower cost structures. A number of comparison websites allow you to compare rates at dozens of online banks. Some of the best-known comparison websites include, and

Step 3

Call several low cost mutual fund companies and get information about their money market mutual funds. While money market mutual funds are not directly guaranteed by the government the way bank money market accounts are, the funds invest only in safe instruments like commercial paper and certificates of deposit. Check the expenses of each money market fund carefully before you invest, since high costs can eat into the generally low returns on money market funds.

Step 4

Read the fine print for each account carefully and make sure you understand all the terms and conditions. Money market funds and accounts give you easy access to your money but they often come with a number of restrictions. For instance, money market funds often restrict the number of checks you can write or the number of withdrawals you can perform each month.

Step 5

Check the minimum required balance for each money market fund and account you are considering. Money market accounts often have higher balance requirements than checking and savings accounts, and if your balance falls below the threshold, you could be subject to a monthly maintenance fee.

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