Americans continue to flock to money market funds, attracted by yields the assets haven't seen in years. So far this year, nearly $1 trillion has flown into the funds, which are "on course for record inflows" in 2023, according to a recent note from Bank of America. The largest funds have yields topping 5%.
"They will keep hitting records, there is no doubt of that," Crane said of money market fund inflows. He believes the 5% yield is the "magic number" for attracting investors. The average yield on his Crane 100 list of the 100 largest taxable money funds is 5.17%. In comparison, bank savings accounts have an average annual percentage yield of 0.58%, according to Bankrate.com .
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