Finding the top money market funds to Invest your money in can be scary, especially if your dream is to keep the money you invest and make a lot of money from it. Money market funds are less risky than investing your money in stocks, but investing your money in a money market fund still does involve taking a risk.
Chapter 1. Money Market Funds
When you invest your money in a money market account, you are allowing the banks to use your money to provide loans for others. When you invest your money in one of the top money market funds, you are not investing your money with a bank, but instead with a broker. The broker then decides what to do with your money. Traditionally your money is invested with big corporations or used to buy bonds or other short term investments. If the corporation your money is invested in fails, you lose money. Money market funds are not FDIC insured, while money market accounts are.
It doesn’t take a corporation to fail for you to lose your money. When you invest your money in money markets, you can’t guarantee always receiving great interest rates on your money, but you can guarantee the interest rate will never get below zero, causing you to lose money. Money market funds have no such guarantee. Although it doesn’t happen often, a negative return on your money is a possibility.
If you have extra money you are looking to invest somewhere, there are top money market funds available, if you are willing to take a risk. The money market fund rates aren’t high enough to be worth the risk of loosing your money. If you decide you would rather play it safe and know your money is protected, then a money market account is a better option than a money market fund.
View the Nation’s Highest Rates for Money Market Accounts