Most money market accounts require a minimum opening balance between $2,500 and $25,000, though some banks have no minimum at all
The minimum balance you need to open a money market account depends entirely on the bank or credit union offering it. There is no federal rule setting a floor. Some institutions—particularly online banks and credit unions—have no minimum at all. Others, especially brick-and-mortar banks, require anywhere from $2,500 to $25,000 to open the account. A few premium accounts aimed at wealthier depositors may require $100,000 or more.
What matters more than the opening minimum is whether the bank charges a monthly fee if your balance falls below a stated level. Many accounts waive the fee if you maintain a certain balance—often $2,500 or $10,000—even if the opening minimum was higher. Some waive fees based on direct deposit or a linked checking account instead. Reading the fee schedule, not just the headline minimum, tells you the real cost of keeping the account open.
Key Takeaways
- Opening minimums range from zero to $25,000 depending on the bank; online banks tend to have lower or no minimums than traditional banks.
- A monthly maintenance fee applies if your balance drops below a threshold, but many banks waive this fee if you meet other conditions like setting up direct deposit.
- The opening minimum and the balance needed to avoid fees are two separate numbers; check both before opening.
- Credit unions often have lower minimums than banks and may waive fees for members who maintain a linked checking account.
- Comparing the full fee schedule across institutions matters more than comparing opening minimums alone.
How opening minimums vary by bank type
Online banks typically have the lowest or no opening minimums because they have fewer physical branches and lower overhead costs. Banks like Ally, Marcus, and Discover often let you open a money market account with $0 down. Some online credit unions work the same way.
Traditional brick-and-mortar banks—Chase, Bank of America, Wells Fargo, and regional banks—usually require $2,500 to $10,000 to open. Premium tiers at these banks may require $25,000 or more. Credit unions vary widely; some have no minimum, while others require $500 to $5,000. Your membership status and whether you have other accounts at the credit union can affect the minimum.
The opening minimum is not the same as the balance you need to keep the account active. A bank might let you open with $2,500 but charge a $10 monthly fee if your balance falls below $10,000. Others waive the fee entirely if you maintain a linked checking account, regardless of the money market balance.
Monthly fees and balance thresholds
Most money market accounts charge a monthly maintenance fee—typically $5 to $25—if your balance falls below a stated level. That threshold is usually $2,500, $5,000, or $10,000. If you stay above it, the fee does not apply. If you drop below it, the fee hits your account each month until you bring the balance back up.
Many banks offer ways to waive the fee without maintaining a high balance. Common waivers include setting up direct deposit of at least $500 per month, maintaining a linked checking account with the same bank, or keeping a combined balance across multiple accounts above a certain level. A few banks waive fees for customers over a certain age or for those who use their debit card a set number of times per month.
Read the fee schedule carefully. A bank advertising "no minimum balance" might still charge a monthly fee unless you meet one of the waiver conditions. Conversely, a bank with a $10,000 opening minimum might waive all fees if you set up direct deposit, making it cheaper to use than a $0-minimum bank that charges $15 per month.
Comparing minimums across account types
| Bank Type | Typical Opening Minimum | Typical Fee Threshold | Common Fee Waivers |
|---|---|---|---|
| Online banks | $0–$2,500 | $0–$2,500 | None needed; most have no fees |
| Traditional banks | $2,500–$10,000 | $2,500–$10,000 | Direct deposit, linked checking, age 55+ |
| Credit unions | $500–$5,000 | $500–$5,000 | Linked checking, membership tier |
| Premium/wealth accounts | $25,000–$100,000+ | $25,000–$100,000+ | Relationship banking, advisory services |
What happens if your balance drops below the minimum
If your balance falls below the threshold, the bank charges the monthly maintenance fee. This fee comes out of your account automatically, which can push your balance even lower. The fee keeps charging each month until you deposit enough to get back above the threshold or meet a fee waiver condition.
Dropping below the minimum does not close your account or trigger any penalty beyond the monthly fee. You can still deposit and withdraw money normally. However, if your balance stays very low for an extended period and you are not using the account, the bank may close it for inactivity—typically after 12 months with no deposits or withdrawals, though this varies by institution.
How to find the lowest minimum for your situation
Start by listing the banks or credit unions where you already have accounts. Many institutions offer lower minimums to existing customers or waive minimums entirely if you link a checking account. Call or check the website for the specific money market account you are considering; minimums vary by product even within the same bank.
If you do not have an existing relationship, online banks are usually the fastest route to a zero-minimum account. If you prefer a physical branch, ask your current bank what minimums and waivers apply to their money market accounts. Credit unions often have competitive minimums and may waive fees for members who maintain a checking account there.
Compare the full cost, not just the opening minimum. A $10,000 opening minimum with no monthly fees may be cheaper than a $0 minimum with a $15 monthly fee if you plan to keep less than $10,000 in the account. Use the fee schedule to calculate what you will actually pay over a year.
Frequently Asked Questions
Can I open a money market account with less than the stated minimum?
Not typically. The opening minimum is a requirement set by the bank, and you usually cannot open the account without meeting it. However, some banks waive minimums for customers who set up automatic transfers or direct deposit before opening. Contact the bank directly to ask whether exceptions are available.
Does the minimum balance earn interest?
Yes. All money in a money market account earns interest at the rate the bank advertises, regardless of whether it is part of the minimum balance or above it. The interest rate is the same across your entire balance. The minimum is only a threshold for avoiding fees, not a separate earning tier.
What if I need to withdraw money and drop below the minimum?
You can withdraw money freely, even if it brings your balance below the minimum. However, you will then owe the monthly maintenance fee until your balance goes back up or you meet a fee waiver condition. Plan withdrawals accordingly if you are close to the threshold.
Are minimums the same at all branches of the same bank?
Yes. A bank's opening minimum and fee structure are set company-wide, not by individual branch. However, some banks offer different minimums for different account tiers or promotional periods. Check the current terms on the bank's website or call the branch, because terms can change.
Do credit unions have lower minimums than banks?
Often, but not always. Credit unions tend to have lower minimums and more flexible fee waivers, especially for members with linked checking accounts. However, some credit unions have minimums as high as traditional banks. Compare the specific institution's terms rather than assuming credit unions are always cheaper.