Advantages of Investing in a Money Market Account

Video Transcript

"Hi there, I'm Cathy Pareto, the founder of Cathy Pareto & Associates, certified financial planner here in Miami, Florida. In this clip we're going to talk about money market accounts. Now money market accounts are a usually a higher yield savings account at a bank which are FDIC insured and it's a good way for savers or investors to sock away some extra money in a higher interest environment versus say just a savings account or a checking account. And money market accounts are going to limit to you the number of withdrawals that you can do on a monthly basis, there are some restrictions as far as how many transfers or withdrawals you can do per month and that's typically six. So unlike with a checking or savings account, you're going to be subjected to really monitoring what your transactions are. But you are able to get just a little bit more yield out of those accounts then you would a regular savings or checking. And money market accounts are not money market funds, which are dramatically different and beyond the scope of this particular clip. Again that's a little on money market accounts and this is Cathy Pareto in Miami, Florida."