Tag: March

Best Money Market Accounts for March 2020

Despite the many advantages of an MMA, there are a few areas where it can come up short for some. Let’s look at the other side of the coin.

Withdrawal and transfer restrictions — The Federal Reserve places limits on withdrawal and transfer activities for both savings accounts and MMAs. The Fed generally considers these account types to be vehicles for savings, after all, and actively tries to discourage too much fund-draining from them.

It does this through its Regulation D, a rule that prohibits account holders from making more than six withdrawals and/or outgoing transfers per month. Any MMA holder that exceeds that limit is subject to a penalty fee from their bank or other financial institution.

That sounds restrictive and it can be, but it only covers certain types of withdrawals/transfers. These include:

  • Electronic transfers
  • Wire transfers
  • Automated Clearing House (ACH) transfers
  • Transfers by debit card
  • Transfers by
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