You can take money out of a money market account by writing a check, swiping a linked debit card, moving funds electronically, or walking into a branch. Since April 2020, federal rules no longer cap how many withdrawals you can make each month, but many banks still enforce their own six-transaction limit on certain types of withdrawals and charge a fee for each one over that.
Ways to Pull Money Out
Most banks and credit unions give you several options:
- Checks written directly against the account, if your bank issues a checkbook for it.
- A linked debit card for point-of-sale purchases and ATM cash withdrawals. Daily ATM limits vary, commonly from $500 to $5,000.
- Electronic transfers through ACH, outgoing wires, or online and mobile banking. Wires and ACH credits are generally available by the next business day.
- In-person withdrawals at a branch. This is the route for large cash amounts or a cashier’s check, especially when you need more than your daily electronic or ATM limit.
If you share the account with someone else, either owner can generally withdraw the full balance without the other’s permission. The specifics come from your account agreement and state law, so check the contract if that matters to you.1Consumer Financial Protection Bureau. Joint Checking Account Owner Took All the Money
What Federal Rules Say Now
Before 2020, Federal Reserve Regulation D defined a savings deposit, including a money market account, as an account limited to six convenient transfers or withdrawals per month. In April 2020, the Federal Reserve removed that cap through an interim final rule. The current definition allows transfers and withdrawals “regardless of the number,” and the Federal Reserve has said it does not plan to put the limit back.2Federal Reserve. Savings Deposits Frequently Asked Questions
The change removed the regulatory requirement. It did not force banks to drop their own limits, and many kept the six-transaction cap as internal policy. Your deposit agreement spells out whether yours did.
One other federal provision worth knowing about: Regulation D still defines a money market account as one where the bank reserves the right to require at least seven days’ written notice before you withdraw.3eCFR. 12 CFR 204.2 – Definitions Banks almost never enforce it, but the right typically sits in the account agreement and could in theory be used during a financial crisis or a run on deposits.
Which Withdrawals Count Toward a Monthly Limit
If your bank still enforces a monthly cap, the transactions that count toward it generally track the old Regulation D categories:
- Online and mobile transfers you initiate through the bank’s website or app.
- Preauthorized transfers, including recurring bill payments, automatic sweeps, and scheduled transfers.
- Phone transfers, whether made through a representative or an automated system.
- Debit card purchases at the point of sale.
Some withdrawal methods usually do not count. In-person withdrawals at a teller window, ATM transactions, and requests mailed to the bank are generally excluded.3eCFR. 12 CFR 204.2 – Definitions If you are close to your bank’s limit for the month, switching to one of these methods for the next withdrawal can keep you under it.
Fees and Other Costs
Excess Transaction Fees
Banks that cap monthly transactions typically charge a per-item fee for each withdrawal over the limit, generally up to $15 each. Some banks waive the fee for customers with high balances; others start charging after fewer than six transactions. The threshold in your account agreement is what controls.
Minimum Balance and Tiered Rates
Money market accounts often require a minimum balance, commonly from a few hundred to several thousand dollars. If a withdrawal drops you below that threshold, the bank may charge a monthly maintenance fee that can eat into your interest earnings.
Many accounts also use tiered interest rates: the rate rises as your balance grows. A large withdrawal can push you into a lower tier and reduce what you earn, even if you stay above the minimum balance. Check the rate schedule before pulling out a significant amount.
Conversion to a Checking Account
Repeatedly going over your bank’s withdrawal limit can prompt the bank to convert your money market account to a standard checking account, which usually pays little or no interest and may carry a different fee structure. Banks have to give at least 30 days’ written notice before making a change to your account terms that would reduce your interest rate or otherwise affect you negatively.4eCFR. 12 CFR 1030.5 – Subsequent Disclosures
Early Closure Fees
If you empty the account and close it soon after opening, some banks charge an early closure fee. These commonly apply when the account is closed within 90 to 180 days of opening and run from roughly $5 to $50. Not every bank charges one, so check the agreement before you open an account you might need to drain quickly.
Tax on Interest You Leave in the Account
Interest on a money market account is taxed as ordinary income. You owe federal income tax on the full amount earned each year, even if you leave the interest in the account and never withdraw it.5Internal Revenue Service. Topic No. 403, Interest Received
If the account earns $10 or more in interest for the year, the bank will send you a Form 1099-INT and report the same amount to the IRS.6Internal Revenue Service. About Form 1099-INT, Interest Income If you earn less than $10 and get no 1099-INT, you still have to report the interest on your return.