What are Money Market Accounts?
What are Money Market Accounts?
Just like a regular savings account, a money market account is a type of savings account that is offered by banks and credit unions. The main difference is that money market accounts will usually pay higher interest, have higher minimum balance requirements, and often they only allow three to six withdrawals from the account per month. With most market money accounts you are also allowed to write checks on the account.
If the account is held in a qualified bank, the money in a money market account is insured by the Federal Deposit Insurance Corporation (FDIC). This means that if the bank or credit union goes out of business your money will be returned to you.
With credit unions, your money is insured by the National Credit Union Administration (NCUA), another federal agency that protects consumers from loss.
Like a regular savings account, the money that you invest in a money market account earns interest. Interest is the money that the bank or credit union will pay you in order for them to use your money to fund loans to others.
In very simple terms the process works like this: You put your money into a money market account. The bank or credit union will pay you a certain amount of interest on that money. The bank or credit union will then loan the money out to others but they will charge those borrowers more interest than what they are paying you.
The difference between the interest that they pay you as compared to the interest they charge those who borrow is how they make a living and how you earn on your investment with the bank.
The interest on money market accounts is usually compounded daily and paid monthly. Compounded interest is one of the best ways to earn money from the bank. In essence, they are paying you interest on the money they have already paid you in interest.
Interest rates paid by money market accounts will vary from bank to bank. This is one good reason to shop around for the best rates before signing on with any bank.
In many cases, the more money you keep in the money market account the higher the interest rate you will get. You should ask about this when shopping for a bank.
You can take money out of a money market account but there may be some fees involved. Normally, you are allowed only a certain number of withdrawals each month. Most banks will charge a fee of around if you do not keep a certain minimum balance in the account. You may also have to pay a fee if you go over the limit on withdraws per months.
You will receive a statement each month from the bank or credit union. This statement will tell you the transactions as well as any fees charged to the account and it will also tell you the interest your money has earned.
During any given month, you are also allowed to add money to the account. This is a very good way to make your savings grow fast.
Peter Kenny is a writer for The Thrifty Scot, please visit us at Unsecured Loans and Compare Mortgages
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Yep. This doesn’t even get into all the rediculous fees for electronically transferring money. …or how messed up the stock market is…
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I am in total agreement! the only reason I have a bank account is because I have to have one to cash my paycheck. I do use paypal on occasion for purchasing things I cannot find locally but there is no waiting with paypal. Click! Done! Down with evil banks!
@GarothThorp Try as I might to objectively understand your point of view , I’m having a difficult time resolving Jamie’s story as anything but factual. Entertainingly presented, but factual nonetheless. Perhaps, as someone who went “to university”, you would care to elaborate on which aspects you consider to be debatable.
Brilliant video.
By far one of your more interesting videos.
You’re very convincing to a lot of people, and that worries me as usual. I’d really prefer you put in the extra time to add proper sources to your information, so it doesn’t seem like you’re just making it up or telling half the story. As someone who went to university, your version always seems horribly biased.
love it thanks man
Awesome video Jaimie. Have you heard of the Zeitgeist Movement? They are all about how the whole economic system is horrible for the human race and the planet. Their latest movie Zeitgeist: Moving Forward (the whole thing is on YouTube) covers the money system from a similar point of view as you. If you wanted to skip right to that part, it starts at 42:17.
“pirate organization of terror”
awesome
12 Jews disliked this video.
Great video, I hope your younger viewers can learn something from this!!
@safeshark Cool. A few friends have told me that I’d like Ron Paul. I am pretty happy to know there are a few respectable politicians out there. I don’t really know anything about him first hand, though. I might look into it. …..or maybe I’ll just be glad that he’s doing what he can, and I’ll keep doing what I can.
Either way, it makes me smile. 
@JMEMantzel Speaking of the almost nonexistent honorable politician, have you ever heard of a guy called Ron Paul? He’s the only congressperson I know of who agrees with almost anything and everything you talk about.
Actually, I originally discovered your videos at the “Freedom Living” section of Ron Paul Forums.
check this out
Bitcoin is a digital currency created in 2009 by Satoshi Nakamoto
bitcoin.org
Hey i wanted a bank account for some time but then all the stuff that you said flashed through my head in like an instant,this was like 2 years ago ,then i thought why dont i just get a safe for christmas. Also long long before i saw your channel i dreamed and i still do about living like you. Exept on a mountian in Utah.
So its the greedy Jews fault? Or is it man kinds essential illness?
I hope the only thing people get out of this isn’t that “oh man I need to invest in gold”. That is an equally useless substance as money. Except that it is very heat conductive.
@aggrav8d that’s true, it could be seen as insensitive, though historically eastern European Jewish culture have used the words shyster and shivster to refer to black people, interesting side note.
The rumor is the feds are making a new currency called treasuries to replace the dying dollar. It will take many dollars to get one treasury dollar. They will force everyone to exchange their old dollars for the new treasury dollar. This way they can keep the ponzi scheme going and going and going.
JME I made my eight year old son watch this video .. He loved it .. Sparked a great conversation between us after. Thank You So Much .. Im always trying to teach my kids to be more self sufficent .. this world needs alot more jme,s .. we try to trade for everything we cant make ! screw the dollar
I love you, man.
for a more detailed view I’d recommend “money as debt” (you can find it on youtube), which says basically the same thing as this video, but a lot more detailed.
You should read Newton and the Counterfeiter to get your story straight.
Also, some people continue to regard the word ‘shyster’ as referring particularly to Jews.
really simplified, but mostly right I suppose. In reality there are regulations on banks though, on what they may do and how. What happened to country’s who were bad off during the crisis (like the U.S. Greece and Ireland) was that the regulations weren’t hard engough and didn’t work while country’s with better regulations (i.e. northern Europe (except Iceland)) was that regulations worked pretty well. The system works as long as we are able to produce more stuff, but that’s bad for environment.