Low Rates Hit Money-Market Funds.The article reports on the negative impact of the continued decline of interest rates on money-market mutual funds as evidenced by the drop in the yield on the 10-year Treasury to below 2 percent on August 18, 2011.Wall Street Journal - Eastern Edition...
Money market accounts are very different from money market funds. A money market account is a banking instrument. A money market fund is an investment product. Money market funds are a type of mutual fund that invests in cash and cash-equivalent securities. Money market accounts may include "...
The best money market accounts have rates above 5% APY. Here’s how to make your money work harder.
MONEY MARKET MUTUAL FUND YIELDS ManagerFund7-Day YieldInitial Minimum InvestmentExternal CUSIPTicker Symbol DREYFUSDREYFUS GOVT CASH MNGT SERV SH4.37%$ 0.01262006836DGUXX DREYFUSDREYFUS GOVT CASH MNGT WEALTH4.92%$ 100,000.00262006844DGQXX DREYFUSDREYFUS GOVT CASH MT ADMIN SH5.07%$ 500,000.00262006406DAG...
Certificates of deposit (CDs): CDs typically offer higher rates than MMAs in exchange for setting aside your funds for a set period of time. MMAs vs. money market mutual funds: What's the difference? Despite their similar names, MMAs and money market mutual funds are distinct financial produc...
NexBankhas a 1-year certificate at5.35% APY($10,000 min). There is a 180-day interest penalty if you withdraw your CD funds before maturity. Money market mutual funds Many brokerage firms that pay out very little interest on their default cash sweep funds (and keep the difference for the...
Part of the money a bank or credit union pays out as money market interest rates also comes from interest earned on the financial institution's own investments. These can include deposit accounts at other financial institutions as well as investments in the stock market, such as mutual funds. ...
When the Fed rate is high, banks raise CD rates to offset competition from higher rates paid by money market mutual funds and United States Treasurys, says Anthony Chan, an economist and public speaker. He adds that in this high interest rate environment, rising CD rates have also been exac...
Money market fundsare mutual funds that are offered by brokerages, investment companies, and financial services firms. They pool money from multiple investors and invest in high-quality, short-term securities. While they are technically investments, they act more like on-...
Returns from these instruments are dependent on the applicable market interest rates, and therefore the overall returns from money market funds are also dependent on interest rates. So, the lower the rate set by the Fed, the lower the rate a money market fund pays to its investors. What Is ...