Withdrawing money from a money market account works much like pulling from a checking or savings account: you can write a check, use a linked debit card, move funds by electronic transfer, or visit a branch. Since April 2020, federal rules no longer cap how many withdrawals you can make each month, but many banks kept the old six-per-month limit as their own policy and charge a fee when you go over.
Ways to Take Money Out
Most banks and credit unions give you four routes to your balance.
- 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. Daily ATM caps vary, commonly $500 to $5,000.
- Electronic transfers, including ACH, outgoing wires, and moves through online or mobile banking. Wires and ACH credits are generally available the next business day.
- In-person withdrawals at a branch, which is the practical option for large cash amounts or a cashier’s check that exceeds your daily electronic or ATM limit.
If the account is joint, either owner can generally withdraw the full balance without the other’s permission. The exact rule depends on your account agreement and state law.1Consumer Financial Protection Bureau. Joint Checking Account Owner Took All the Money
What Changed in 2020 and Why Your Bank May Still Limit You
Before April 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 an interim final rule that year, the Federal Reserve deleted the six-transaction cap from the regulatory text. Savings deposits can now be accessed “regardless of the number” of transfers, and the Fed has said it does not plan to reinstate the limit.2Federal Reserve. Savings Deposits Frequently Asked Questions
The change lifted the requirement; it did not require banks to offer unlimited transactions. Many kept the six-transaction rule as internal policy to manage reserves and operating costs. Your deposit agreement is the document that tells you whether a monthly limit still applies to your account and what happens when you cross it.
Which Withdrawals Count Against a Bank Limit
If your bank still enforces a monthly cap, the transactions that count toward it usually track the old Regulation D categories:
- Online and mobile transfers you initiate through the website or app.
- Preauthorized transfers, including recurring bill payments and automatic sweeps.
- Phone transfers made through a representative or an automated system.
- Debit card purchases at the point of sale.
Certain methods typically do not count. Withdrawals at a teller window, ATM transactions, and requests made by mail are generally excluded.3eCFR. 12 CFR 204.2 – Definitions If you are close to the monthly limit, shifting to a teller or ATM is the simplest way to avoid a fee.
Fees and Other Costs to Watch
Excess Transaction Fees
Banks that still enforce a monthly cap generally charge a per-item fee for each withdrawal past the limit, commonly up to $15. Some waive it for high-balance customers; others begin charging before you reach six transactions. The threshold in your account agreement is the one that matters.
Account Conversion
Repeatedly exceeding the limit can lead the bank to convert your money market account into a standard checking account, which usually pays little or no interest and may come with a different fee structure. A bank must give you at least 30 days’ written notice before making a change to your account terms that reduces your interest rate or otherwise affects you negatively.4eCFR. 12 CFR 1030.5 – Subsequent Disclosures
Minimum Balance and Tiered Rates
Money market accounts often require a minimum balance, typically anywhere 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 erodes your interest earnings.
Many accounts also pay tiered rates, so the rate you earn climbs with your balance. A large withdrawal can move you into a lower tier and cut your yield even when the balance stays above the minimum. Reviewing the rate schedule before you pull a significant amount lets you weigh the temporary rate drop against the reason for the withdrawal.
Early Closure Fees
If you withdraw everything and close the account shortly after opening it, some banks charge an early closure fee. This commonly applies within 90 to 180 days of opening and can run from about $5 to $50. Not every bank charges one, so the account agreement is worth checking before you open an account you might close quickly.
The Seven-Day Notice a Bank Can Require
Regulation D still defines a savings deposit, including a money market account, as an account where the bank reserves the right to require at least seven days’ written notice before a withdrawal.3eCFR. 12 CFR 204.2 – Definitions Banks almost never enforce it, but the right typically sits in the account agreement and could be invoked in unusual circumstances such as a financial crisis or a run on deposits.
Make Sure You Have an Account, Not a Fund
A money market account at a bank or credit union is a deposit account with federal insurance behind it. A money market mutual fund is an investment product held at a brokerage and is not federally insured against loss.5Consumer Financial Protection Bureau. What Is a Money Market Account Withdrawal mechanics, fees, and tax treatment differ between the two. If a brokerage that holds your money market fund fails, SIPC covers up to $500,000 in securities, including a $250,000 cash limit, but it does not cover a decline in the fund’s value.6SIPC. What SIPC Protects If you are unsure which product you have, confirm whether the account is held at a bank or a brokerage before you plan a withdrawal.