An MMA works much like a savings account. Once you open it, you can deposit funds and earn interest. Depending on the bank, the account may also have withdrawal transaction limits. The process of opening an MMA is generally the same as opening a savings account.
Let’s walk through the five steps you need to complete to open this type of account.
Step 1: Compare your options
The first step in choosing an MMA is to look at the different options offered by banks. Some banks may have different requirements and annual percentage yields (APYs). Your APY measures how much you'd earn each year for storing money in the account.
The APY may be the most important factor for those who are prioritizing growing their savings. However, it’s not the only factor you should consider when shopping around for an MMA. You may also want to consider:
- Fees
- Minimum balance requirements
- Opening deposit requirements
- Withdrawal transaction limits
- Account features, like a debit card and checks
The type of bank can be another important factor. For example, brick-and-mortar banks usually let you make cash deposits, while online-only banks may not.
Step 2: Gather required documents
To apply for an MMA, you typically have to provide the same information as you would if you were opening a savings account. This can include personal information, like your name, address, contact information and Social Security Number (or Individual Taxpayer Identification Number). You may also need to provide a valid government-issued ID and a second form of ID, such as a birth certificate or a bill in your name.
