Citizens Bank Money Market Account: Everything You Need To Know
Written by
Joseph Hostetler
Edited by
Emily Gadd
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Annual percentage yield, or APY, is the return rate you’ll receive for parking your money in a bank account. The higher the APY, the more you’ll earn. It’s effectively “free” money. If you’re not keeping your money in a high APY bank account, you’re missing out on growing your savings.
One of the best high-yield savings accounts is called a money market account.
The average APY of a money market account is 0.64%, per the FDIC. As you’ll see, Citizens Bank Money Market rates can be more than 5 times higher.
What Is a Money Market Account?
A money market account is a hybrid checking and savings account.
A checking account is designed to accommodate your financial activity. You use it for everyday tasks like:
- Paying your bills
- Writing checks
- Spending with your debit card
A checking account typically earns minimal APY on the account balance.
In contrast, the money in a savings account is meant to be rarely-touched. Savings accounts also often earn a notably higher APY than checking accounts.
A money market account is the best of both worlds. It tends to earn a respectable APY (sometimes even higher than traditional savings accounts), and it usually comes with a debit card and check-writing privileges, as well. Just note that you may be subject to a minimum deposit to establish an account.
Does Citizens Bank Offer Money Market Accounts?
Citizens Bank offers three types of Money Market Accounts:
- Personal Money Market (the easiest-to-get account with the least benefits)
- Citizens Quest Money Market (comes with a higher interest rate for those with large deposits)
- Citizens Private Client™ Money Market (offers the highest APY, but only suitable for those with a high net worth)
What Is the Minimum Opening Deposit for a Citizens Bank MMA?
There is no minimum opening deposit for any Citizens Bank MMA. However, the Citizens Private Client MMA requires that you have a Citizens Private Client Checking account. Only those who maintain a total of $200,000 in monthly combined deposits can hold this account.
What Is the Interest Rate for a Citizens Bank Money Market Account?
Each of the three Citizens Bank MMAs offer varying interest rates.
A Personal Money Market account receives a flat APY, regardless of your account balance.
A Citizens Quest Money Market account has different tiers for higher balances. You’ll receive:
- APY for balances under $25,000
- APY for balances between $250,000 and $999,999
- APY for balances of $1 million or more
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Even better, you’ll get a “preferred” rate of APY when depositing at least $25,000 in “new” money (not currently in a Citizens Bank account).
The Citizens Private Client Money Market account offers the bank’s best rates:
- APY for balances under $100,000
- APY for balances between $100,000 and $999,999
- APY for balances of $1 million or more
This account also rewards you for depositing at least $25,000 in “new” money, offering a whopping APY.
How To Open a Citizens Bank MMA
To open a Citizens Bank MMA, you’ll first have to stipulate whether you’re a new or existing customer with Citizens Bank. You’ll enter all the standard information, such as your:
- Social Security number
- Email address
- Phone number
- Occupation
If you’re opening an MMA that requires an associated checking account that you don’t have, you’ll also have to open a bank account.
Are There Withdrawal Limits on Citizens Bank MMAs?
Citizens Bank does enforce withdrawal limits on its Money Market Accounts. While you’ll get unlimited deposits (ATM or in-branch), you can only make six withdrawals per statement period. This includes:
- Online transfers
- Checks
- Debit card transactions
- Automatic interest transfers
If you violate this limit more than three times within a 12-statement period, Citizens Bank will place your money into a checking account–resulting in a lower APY.
What Is the Monthly Maintenance Fee?
The Citizens Bank Personal Money Market account incurs a $10 maintenance fee. Fortunately, it can be easily avoided by simply maintaining a daily balance of $2,500 or more.
Those with a Citizens Quest Money Market or Citizens Private Client Money Market account won’t pay maintenance fees, as they require you to hold eligible checking accounts which waive this fee.
Are Citizens Bank Money Market Accounts FDIC-Insured?
Citizens Bank Money Market Accounts are FDIC-insured. You’ll receive the same $250,000 guarantee on your money as a checking or savings account. Just note that the FDIC extends this insurance per individual per bank.
In other words, if the sum of all your Citizens Bank accounts (checking, savings, MMAs, CDs etc.) is above $250,000, you won’t be fully covered. If this worries you, it could be worth opening an MMA with a different bank.
How To Choose Between a Citizens Bank Money Market Account and Savings Account
When choosing between a Citizens Bank MMA and a savings account, the most important question to ask yourself is: Do you value the ability to make transactions directly from your savings account more than a high APY?
Citizens Bank savings accounts offer up to APY for any balance. That’s a 0.50% higher return than the bank’s absolute best MMA interest rate (which requires you to keep hundreds of thousands of dollars in assets in your Citizens Bank accounts).
However, you won’t get features like a debit card or check-writing ability. You’ll have to transfer your money to a checking account first. If that doesn’t bother you, a savings account is a better choice for your money.
Final Take
Citizens Bank is one of the best banks for Money Market Accounts. It offers a generous return rate for those that can afford to fund MMAs with money not currently held in a Citizens Bank account. By depositing at least $25,000 in “new” money into your account, you’ll receive between and APY. It’s an excellent low-effort way to make some extra money.
Information is accurate as of Sept. 24, 2024.
