4 key differences between money market funds and high-yield savings accounts

  • 📰 NBCLA
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 59%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Consumers looking to earn high interest on savings while having easy access to the cash can be torn between high-yield savings accounts and money market funds.

, on the other hand — while also generally safe — are a bit riskier, experts said.

From 2007 to 2011, at least 21 other funds would have broken the buck without a capital infusion from the funds' sponsors, according to a 2012Since they aren't bank accounts, money funds don't carry FDIC insurance. They do have Securities Investor Protection Corporation, or SIPC, protection, which insures against the loss of cash and securities up to $500,000 if an investor's brokerage fails.

Current rates are just a"snippet in time," however, McBride said. Over the 2008 to 2021 period, high-yield accounts"were measurably above what money funds were paying," he said.3. Account minimums However, some money market funds may carry tax benefits, said Eric Bronnenkant, head of tax at Betterment. It's important for consumers to consider their net yield after taxes, he said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 319. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Breitbart Business Digest: American Consumers Are Fighting the FedThe economic tide keeps rising even though the Fed has declared it is time for an ebb
Source: BreitbartNews - 🏆 610. / 51 Read more »