<p>Wonder if anyone has similar experience.
I opened an money market account last year, for 3 years.
I need the money for another investment early 2013
so, I call the bank asked about close the account.
They told me if I close the account now (only one year)
I won’t get any earned interest.</p>
<p>Is this normal?
I knew there must be some penalty
but, not heavy penalty like this.
Should I (or can I) argue with the bank?</p>
<p>The penalty should be spelled out in the document you signed establishing the account. Around here, 6 mos. interest is pretty standard for bank CD accounts of a year or more. I’ve never heard of early withdrawal penalties or a term for bank money market accounts. Was this some sort of special or promotional money market account with a higher rate? 12 mos. interest penalty seems high but if that’s what the documents you signed say, no you can’t argue.</p>
<p>Money markets should be liquid. It’s strange to put the moniker “Money Market” on an instrument with deposit requirements.</p>
<p>I had a money market, at one time, that also had a penalty for early withdrawl. I believe the term was two years and the rate of interest was double what all the other banks were paying. After 18 months, the rate dropped significantly, as it was never guaranteed. It made me mad, but the interest I earned outweighed the penalty(around $20) for closing the account.</p>