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KeyBank Money Market Account: Everything You Need To Know

August 13, 2024

5 min Read

Written by Melissa Locker

Edited by Nupur Gambhir

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Money market account, or MMAs, can be convenient and excellent places to stash your savings. The accounts frequently come with checkbooks and debit cards to make it easy to access funds quickly and easily. That’s why money market accounts are useful for maintaining an emergency fund, vacation or wedding fund, planned tax payments, and other short-term savings goals.

KeyBank, along with many other banks and financial institutions (although not all), offers money market accounts in addition to more traditional savings plans. Here what you need to know about Key Bank Money Market Rates and the product as a whole.

What Is a Money Market Account?

Money market accounts or MMAs are a type of savings account, though they function as a hybrid between checking and savings accounts. Like a savings account they pay interest on the balance you deposit, frequently at higher rates than traditional savings accounts.

MMAs frequently have minimum balance and minimum deposit requirements. In addition to higher interest rates, MMAs have another perk for consumers: accessibility. Like checking accounts, MMAs typically come with checks and debit cards for easy access to your money making them very convenient.

Does KeyBank Offer Money Market Accounts?

Yes, they offer a Key Select Money Market Savings account that offers a variable interest rate based on account balances, but up to interest rate on months on balances between $25,000 and $1,999,999.99.

How To Choose Between a KeyBank Money Market Account and Savings Account

Those choosing between a traditional savings account and a money market account should assess their financial goals and current financial situation to decide whether access, interest rate, or meeting a savings goal is more important at this time.

It’s also important to determine how much money you want to stash. The minimum opening deposit for the Key Active Saver account, their more traditional savings account, is just $10, while the minimum opening deposit for a MMA is $5,000.

According to KeyBank, consumers who can meet the minimum deposit and the minimum balance requirements are “usually better off with a money market savings account” as the funds in a money market savings account will yield more interest earnings.

How To Open a KeyBank MMA

To open a bank account with KeyBank, fill out an application, including address, contact information and Social Security number. Then, transfer or deposit funds that meet the account’s minimum deposit requirements.

What Is the Minimum Opening Deposit for a KeyBank MMA?

KeyBank requires a minimum of $5,000 for the opening deposit of a money market account. That minimum allows for unlimited check writing and the balance can be used as overdraft protection for a KeyBank checking account.

What Is the Interest Rate for a KeyBank Money Market Account?

The interest rate determines how your money will grow as it sits in the account. The higher the interest rates are, the more money earned. At KeyBank, interest rates for Money Market Accounts vary by location and by amount of deposit. Generally interest rates climb with the balance.

When you open an account, you will need to enter your ZIP code to see the interest rate. For example, according to KeyBank’s website, the standard rate for ZIP code 44114 can be up to APY. Additionally, interest is compounded daily for higher returns.

It is important to note that these are variable rates and as such, rates and terms may change at the bank’s discretion. That variability also means that the interest rate attached to your account could fall.

Are There Withdrawal Limits on KeyBank MMAs?

In the past, withdrawals from money market accounts were limited to six per month by the Federal Reserve’s Regulation D. However, the Fed removed that limit in April 2020. KeyBank, along with others, have done away completely with withdrawal limits, so consumers may write an unlimited number of checks from their MMAs.

What Is the Monthly Maintenance Fee?

KeyBank charges a $20 monthly maintenance fee for its money market accounts, but that fee is frequently waived if you maintain a minimum balance or qualify for a waiver. To waive the monthly maintenance fee, customers need to have either a KeyBank consumer relationship package checking account or a minimum daily balance of $25,000.

Are KeyBank Money Market Accounts FDIC-Insured?

Yes, like a normal checking or savings account, money market savings accounts at KeyBank are insured by the Federal Deposit Insurance Corporation, or FDIC. That means savers enjoy the same security with an MMA as with other types of bank accounts.

What Is the Best CD Rate at KeyBank?

KeyBank offers several CD options, including their Short-Term CDs, at a higher interest rate, Tiered Long-Term CDs, and a High-Yield Jumbo CD option for those looking to earn interest on $100,000 or more. How much interest you earn on your KeyBank CD depends on the amount you deposit, the term you choose and your fixed interest rate. KeyBank has savings calculator to help determine the exact rate.

Final Take

KeyBank’s Money Market Account requires a higher minimum balance and higher minimum deposits than traditional savings account do. There may also be higher fees associated with the account. Additionally, KeyBank MMAs and most MMAs typically have variable interest rates, which comes with risks and rewards. If locking in a fixed interest rate for an extended period is important or appealing to you, a CD account or a high-yield savings account might be more appropriate.

Alternatively, for those seeking higher returns and who are okay with taking on some risk, investing in the stock market or creating a brokerage account could be more fruitful.

Information on promotions is accurate as of Aug. 8, 2024. Additional requirements may apply. Offers and terms are subject to change.

Rates may vary by region. To verify rates in your area, check the issuer’s website for details.

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