What are the Requirements in Opening a Money Market Account?
Opening a money market account surely requires a number of requirements. The basic requirements are asked in the application form which can be sent by mail or through the Internet.
- basic information such as name and birthday
- work address
- valid identification
- home address
- phone number
- minimum opening deposit required
- social security number
- signed account application
- email address
Banks are also mandated by law to conduct a background check to costumers by virtue of the Patriot Act or Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001signed into law by George W. Bush in October 26, 2001. Banks will countercheck the costumers’ information using the OFAC database where a list of terrorists, people, and businesses who are not allowed to open any bank account in the US is included.
After the 9/11 terrorist attack, the federal government has issued strict laws for banks to follow. According to the Money Laundering: A Banker’s Guide to Avoiding Problems released in December 2002, financial institutions must exercise due diligence at account opening. In this aspect, banks have been standardized because they follow a prescribed procedure. Looking at the provisions, banks have the following tasks covering both foreign and domestic costumers:
- Verification of Identification
- Special Due Diligence for Correspondent and Private Banking Accounts
The Patriot Act has provisions that will require costumers to provide specific identifications such as valid passport, resident alien card, government ID and valid driver’s license. These are also required by online banks. The main purpose of this is to deter money laundering. Every costumer should exercise honest disclosure when providing information because they can be legally penalized for doing so or their application will be denied.
Banks do not offer the same interest rates, minimum deposit and maintaining balance. To customize your money market account according to what you have and want, shop around. There are websites that contain a list of banks and their rates especially if you are looking for high interest rates. Look for other perks offered that can benefit you as well. Aside from that, you must know the fees that you need to pay.
Call and ask the bank for application forms and the requirements. As a costumer you should be aware of the terms and conditions because you will entrust your money to a financial institution.
