Do Credit Unions Have Money Market Accounts?

Credit unions are member-owned financial cooperatives. Money market accounts are a type of savings account that typically offers higher interest rates than traditional savings accounts, along with some transactional flexibility.

Credit Unions and Money Market Accounts

Credit unions do offer money market accounts as part of their financial product offerings. These accounts provide members with a competitive savings option that combines earning potential with accessibility. This offering aligns with a credit union’s purpose of serving its members’ diverse financial needs.

Key Features of Credit Union Money Market Accounts

Money market accounts at credit unions generally feature competitive interest rates, often referred to as “dividends.” These dividend rates can be tiered, meaning higher account balances may qualify for higher earning rates. Dividends are typically calculated daily and compounded monthly.

These accounts usually have minimum balance requirements for opening and to earn the advertised dividend rates. While some credit unions may allow opening with a nominal deposit, a higher balance is often necessary to avoid fees or achieve the best rates.

Money market accounts offer a degree of liquidity, typically allowing limited transactions such as check-writing or debit card access. Federal regulations, specifically Regulation D, historically limited certain types of withdrawals and transfers from savings and money market accounts to six per month. Although this regulation was suspended by the Federal Reserve in 2020, some financial institutions may still adhere to this limit or impose their own transaction restrictions.

Deposits in credit union money market accounts are insured by the National Credit Union Administration (NCUA) through its Share Insurance Fund. This insurance protects funds up to $250,000 per individual depositor, per credit union, per ownership category, providing a similar level of protection as FDIC insurance at banks.

Accessing a credit union money market account requires membership in the credit union. Membership eligibility often depends on criteria such as living, working, or worshipping in a specific geographic area, employment with a particular organization, or affiliation with certain associations. Once eligible, opening a basic share savings account typically establishes membership.

Opening a Money Market Account at a Credit Union

Opening a money market account at a credit union begins with establishing membership, which is a prerequisite for accessing any of their financial products. Eligibility criteria vary by institution, often requiring a connection to a specific community, employer, or association. Many credit unions also offer pathways to membership through affiliations with non-profit organizations or by simply making a small initial deposit into a primary savings account.

Once membership is established, the process of opening the money market account itself is straightforward. Applicants typically need to provide government-issued identification, such as a driver’s license or passport, along with proof of address and their Social Security number or Tax Identification Number. These documents verify identity and residency.

An initial deposit is commonly required to open a money market account. This amount can vary significantly among credit unions, ranging from a modest sum like $100 to several thousand dollars, depending on the specific account and its tiered interest rate structure. Many credit unions offer convenient application methods, including online applications, in-person visits to a branch, or even applying by mail.