Money market funds hit another record high — but experts warn it's time to move out of cash. Where they see opportunity

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Assets in money market funds hit $6.3 trillion the week ended Wednesday, another record high, according to the Investment Company Institute.

Despite an anticipated Federal Reserve rate cut coming next week, Americans are continuing their love affair with cash. Yet, experts warn they should make some moves if they want to lock in attractive yields. Assets in money market funds hit $6.3 trillion the week ended Wednesday, another record high, according to the Investment Company Institute . The funds have attracted inflows thanks to their attractive payouts.

"If you want to maximize return on your cash for the next 12 months, it is probably best to lock in 9-month or 12-month CD rates," said Jenkin, a member of the CNBC Financial Advisor Council . "They are at the height of where they are going to be as the Fed is going to lower interest rates over the next 12 months." CD rates have already been coming down, with American Express and Bread Financial both cutting their 12-month rates last week, according to BTIG.

 

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