 Money Market Accounts What's up money geeks mr. V here welcome to another video so in today's video guys We're gonna be talking about money market account in the past. I have done a video about money market accounts Telling you guys about my top five money market accounts, and I'm gonna hook that video up here But I have been getting questions from people getting confused between a money market account and savings account and investment account So I'm like hey I'm gonna do another video about money market account and it can just explain exactly what the money market account is So just to start and money market account doesn't replace your checking or your savings account Just so we're clear and money market account is not an investment account and money market account is just a high Heal savings account So if you have money that you are putting aside for your emergency fund if you have money that you're putting aside Maybe for a down payment if you have money that you're putting aside maybe for a vacation or our home remodeling and You think it's gonna take you two three four five years before you can use that money You can take your chances with the stock market But the disadvantage of that is if the market were to crash during that period you will lose a ton of money So you put that money in a money market account so that you know that when you need that money It's there for you But you're getting a better interest rate than you would get from your local savings account Average local savings account would be about the zero point zero three percent APY but the money market account average you between 1.5 and maybe 2.5 percent APY which is crazy. That's almost about 50 60 70 80 times better than what you get paid from your traditional savings account again Let me explain this your your money market account doesn't replace your savings account your everyday savings And you're checking account that you use for your transactions and stuff that used to maintain that But you take a chunk of your money You put it in the money market account that you know you're gonna use that money in three four five six years You put it in the money market account because you know it's gonna be there when you need it It's not an investment just so we're clear. So the people that have been asked me this questions on Instagram and on YouTube about Getting confused about money market account. I hope this kind of clarifies it Here are the three reasons why I will recommend a money market account to you Number one is that it pays a higher interest rate than your savings account number two is that the money in that money market account is FDIC in short and Finally number three is that you actually can write checks out of this account So if you wanted to do a down payment for your house, you can write it check and they'll catch it out of that account So those are the three key reasons why you should get a money market account So two cons why I would say you shouldn't have a money market account Number one is that you actually have to maintain a minimum balance in certain accounts And then number two is that you only get six transactions a month, which is kind of crazy So if you think about it, you can only go in and out of that account six times a month So this is only two reasons But if you take the benefit of having that higher APY compared to just getting six transactions a month I think it always any any cons that you can possibly think of and here's the deal if you are Nor somebody that goes in and out of that account more than six times a month and then money market accounts are not for you So you should definitely move that money into your savings account or into your checking account because That's an everyday transaction So I hope this kind of clarify Some of their problems or some of the issues or some of the complaints or some of the questions that people have been asking me About money market account. So there you go guys That's that's it for this video if you do have any questions again about money market account Why you think they're important? Definitely let me know in the comment section and if you have your top five money market account We're going to share with us. There's people that can definitely benefit for it like share subscribe and as always Stay motivated