How to Find Best Money Market Mutual Fund Rates?
Money market mutual funds are the most liquid short term investment mechanism in today’s market. The main goal of buying mutual funds is making your cash work for you instead of just sitting in your savings account earning measly interest rates. Money market mutual fund rates are higher than savings account interest rates offered by most banks making money market funds a very desirable method of storing money for businesses and individuals.
Money market mutual fund rates are paid on debt securities like Treasury bills, commercial papers and certificates of deposit with maturity dates that vary from one day to a year. A net value of each money market mutual fund share is always a $1.00 but money market mutual fund rates vary from one debt issuer to another. Money market mutual fund debt obligations are not FDIC insured like, for example, United States savings bonds but are still considered extremely low risk investments.
How do you ensure you get the best money market mutual find rates? The best way to find good mutual funds involved with money market securities is to check with Vanguard or Fidelity as they are historically known to be the leaders in this field. There’s also a number of money market websites who specialize in keeping track of current interest rates, news, articles and will usually give you their top picks like cranedata.com, for example.
Lastly, look beyond money market mutual fund rates and consider the costs of investing in a fund of this type. You would like to pick a money market fund that will not only bring the highest interest rate but will have relatively low fees and policies attainable for individual investors rather than corporations.