Hey, everybody. I want you all to take advantage of the incredible interest rates that a

Lyon Credit Union is currently offering 4.5% for a three-month certificate, 4.75% for a six-month

certificate. But best of all, in my opinion, is 5% for a one-year certificate of deposit.

You can also purchase these in a retirement account. So go to my alliance,

ALLIANT.com, slash Ultimate, and check it out now.

March 26th, 2000 and 23. Welcome everybody to the Women and Money Podcast, as well as everybody

smart enough to listen. This is Susie O. here and today is Susie School. It seems that the last

Sunday podcast that I did. Sheila Beer mentioned about whether money market accounts were insured or

money market mutual funds were insured. It confused you. And you wrote me and go, what did she say?

I didn't quite understand it. So I want to explain to you now the difference between a money market

account and a money market mutual fund. First of all, a money market account is usually issued

by a Credit Union and or a bank. It also usually pays you a higher interest rate than many

savings accounts pay you. But in sense, it is a savings account. It is insured by FDIC for a bank

and CUA for a Credit Union. So money market accounts are absolutely insured. Got that everybody?

A money market mutual fund is usually purchased via a brokerage firm. And it is not covered.

By FDIC or NCUA. It is insured by SIPIC, SIPC, Security, Investor, Protection Corporation.

Now this is where a lot of you get confused. How does SIPIC actually work? Well, you all know

that it will cover up to $500,000 of securities and $250,000 in cash. And in your mind,

that means that if you have more than $250,000 in a money market fund, that it will not be insured.

Wrong, wrong, wrong. So take out your little Susino book here because this is what you need to

understand. A money market mutual fund is a pool of money that all of you invest money in

and you buy shares in that money market fund. It's called a fund. Not a money market account.

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