economy
February 25, 2026
How you can squeeze a little more yield from your idle cash in exchange for a bit of risk
Not all money market funds are built the same. Some funds offer investors a bump in interest income if they're willing to take a little more risk.
TL;DR
- Assets in money market funds reached $7.79 trillion in the week ended Feb. 18.
- While yields on money market funds have decreased, many still offer rates exceeding 3%.
- Prime money market funds provide a potential yield pickup by holding corporate commercial paper alongside government securities.
- Regulatory reforms since 2008 have made prime money funds safer, with higher liquidity and government security requirements.
- Investors should carefully examine the holdings, ratings, and yields of prime money market funds, avoiding those offering excessively high rates.
- The Federal Reserve's key interest rate is currently in the range of 3.5% to 3.75%.
Continue reading the original article