Can You Write Checks From a Money Market Account?

Yes, many money market accounts allow check writing privileges. However, there is usually a limit on the number of checks you can write from your money market account. Some financial institutions allow you to write six checks per month, while others may allow up to 10. If you exceed the check writing quota for the month, you may have to pay a fee.

Key Takeaways

• Many money market accounts include check-writing, but not all. It's a common feature that sets MMAs apart from most savings accounts, so confirm it before you open one.

• Expect a monthly cap, often six to 10 checks. Banks set their own limits, and exceeding them can trigger a fee.

• The six-transaction rule is no longer federal. The Federal Reserve suspended Regulation D's mandatory six-per-month limit in April 2020, so any cap today is the bank's own policy.

Summary generated by AI, verified by MoneyLion editors

What Is a Money Market Account?

A money market account is a type of deposit account that has features of checking and savings accounts. Money market accounts earn higher interest rates than checking accounts. Other features of a money market account include check writing privileges, debit card purchases and FDIC or NCUA-insurance.

Check-Writing Limitations

Here are some of the limits:

• You can make up to six to 10 withdrawals a month. The Federal government suspended the six withdrawal cap in 2020, but banks and credit unions can have their own caps. Make sure you understand any withdrawal caps your account has.

• You may pay an excessive transaction fee. Some financial institutions will charge a fee, ranging from $5 to $15 if you go over the number of withdrawals.

• You can’t assume your money market account has check writing privileges. Not all money market accounts have a check writing feature. Ask your financial institution before assuming this is the case.

What Should You Do If You Hit the Cap?

If you exceed the cap frequently, it may be best to consider a checking account instead of paying the excessive transaction fee on a money market account.

FAQs

Can you always assume you can write checks from a money market account?

Most banks and credit unions have money market accounts with check writing privileges. However, some money market accounts don’t have this feature and so make sure you ask about checking writing privileges.

What happens if I exceed my check writing limit on my money market account?

You will pay an excessive transaction fee that can be between $5 to $15 per instance.

If I write checks often, what is a better fit?

If you’re frequently writing checks, then a checking account is likely a better fit. You don’t want to lose money by paying an excessive transaction fee on a money market account.

Does an ATM withdrawal from your money market account count toward your withdrawal limit?

The monthly transaction limit only applies toward writing checks, debit card purchases and bank transfers. ATM withdrawals are excluded.

Is there a minimum balance you’re required to keep to have check writing privileges on your money market account?

Minimum balances are usually tied to fees on the account and not to check writing privileges.

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Key Terms

• Money market account (MMA) — An insured bank or credit union deposit that pays interest and often adds check-writing and debit card access.

• Check-writing privileges — The feature that lets you write checks directly from your account balance, common on MMAs but rare on savings accounts.

• Convenient transaction — A "remote" transfer or withdrawal — such as a check, debit purchase or electronic transfer — that counts toward a monthly cap, unlike ATM or teller activity.

• Regulation D — The former Federal Reserve rule that capped certain savings and money market withdrawals at six per month until it was suspended in April 2020.

• Excess transaction fee — A charge, often $10 to $15, that some banks apply when you exceed their monthly transaction limit.

• Minimum balance requirement — The amount you must keep in the account to avoid fees or earn the top rate; usually tied to fees rather than check-writing.

• Liquidity — How easily you can reach your cash without penalty, a key MMA strength.

• FDIC / NCUA insurance — Federal coverage of deposits up to $250,000 per depositor, per institution, per ownership category.

Sources

• Federal Register — Regulation D: Reserve Requirements of Depository Institutions

• Federal Reserve — Interim Final Rule Deleting the Six-Per-Month Limit

• Consumer Financial Protection Bureau — What is a money market account?

Summary generated by AI, verified by [Brand] editors