3For the 10-year period ended June 30, 2024, 6 of 6 Vanguard money market funds outperformed their Lipper peer-group average. Results will vary for other time periods. Only mutual funds with a minimum 10-year history were included in the comparison. Source: Lipper, a Thomson Reuters Company. The competitive performance data shown represent past performance, which is not a guarantee of future results.View fund performance
4Vanguard average expense ratio for money market funds: 0.11%. Industry average expense ratio: 0.24%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2023.
5Bank accounts can offer more liquidity, ATM access, and overdraft protection. You should consider all material differences before choosing to invest.
Source for 10x yield comparison to bank savings accounts:FDIC National Rates and Rate Caps. For current Vanguard money market fund yields, see above.
All investing is subject to risk, including the possible loss of the money you invest.
Vanguard Municipal Money Market Fund is only available to retail investors (natural persons). You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
Vanguard Cash Reserves Federal Money Market Fund and Vanguard Federal Money Market Fund: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress.
For more information about Vanguard mutual funds or Vanguard ETFs, obtain a mutual fund or an ETF prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
FAQs
Money market accounts offer a low-risk environment with a higher interest rate to grow your money. Money market accounts are insured by the FDIC and can help individuals reach their short-term savings goals.
What money market is used for short term funding? ›
Money market refers to the market for trading of short term securities and funds. Securities traded in the money market have a very short maturity period ranging from one day to one year.
Are money market investments short term investments? ›
The money market refers to trading in very short-term debt investments. It involves continuous large-volume trades between institutions and traders at the wholesale level. It includes money market mutual funds bought by individual investors and money market accounts opened at banks at the retail level.
Which investing is best for short term financial goals? ›
Key takeaways. Short-term goals are within a five-year window, while long-term goals are at least five years out. CDs, money market accounts, and traditional savings accounts are best served for short-term goals. Investing is generally reserved for long-term goals so there's time to withstand performance fluctuations.
What is the downside to a money market account? ›
Money market accounts are savings accounts that often offer higher interest rates than regular savings accounts and often incorporate checking account features, like easy access to cash. Yet they can also have downsides: Many have minimum balance requirements and excessive fees.
How much will $10,000 make in a money market account? ›
Earnings after one year on $10,000 in a money market account
| APY | Interest earned annually on $10,000 | Total value |
|---|
| 0.64% | $64.20 | $10,064.20 |
| 4.00% | $408.08 | $10,408.08 |
| 4.25% | $434.13 | $10,434.13 |
| 4.50% | $460.25 | $10,460.25 |
3 more rowsWhat is the 7-day yield? The 7-Day Yield represents the annualized fund yield based on the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of all applicable waivers.
What are the risks of money market funds? ›
Though not quite as safe as cash, money market funds are considered extremely low-risk on the investment spectrum. A money market fund generates income (taxable or tax-free, depending on its portfolio) but little capital appreciation.
What is the best money market fund right now? ›
Our picks at a glance
| Fund | Yield | Net expense ratio |
|---|
| Vanguard Federal Money Market Fund (VMFXX) | 5.29% | 0.11% |
| Schwab Value Advantage Money Fund Investor Shares (SWVXX) | 5.14% | 0.34% |
| Vanguard Cash Reserves Federal Money Market Fund Admiral Shares (VMRXX) | 5.3% | 0.10% |
| Vanguard Treasury Money Market Fund (VUSXX) | 5.29% | 0.90% |
4 more rows7 days ago
How are money market funds taxed? The earnings from money market funds can come from interest income or capital gains, so they're taxed the same way as other investment income.
Best Short Term Investment Options in India:
- Fixed Deposits. Fixed Deposits (FDs) are one of the most popular Short-Term Investment options in India. ...
- Savings Accounts. Savings Accounts are another popular low-risk Short-Term Investment option that offers high liquidity. ...
- Recurring Deposits. ...
- Money Market Funds. ...
- Treasury Bills.
They have high liquidity, minimal market risk, and a short maturity period—usually less than 3 months. Are you getting the best possible returns on your short-term savings?
Where to get 10 percent return on investment? ›
Investments That Can Potentially Return 10% or More
- Growth Stocks. Growth stocks represent companies expected to grow at an above-average rate compared to other companies. ...
- Real Estate. ...
- Junk Bonds. ...
- Index Funds and ETFs. ...
- Options Trading. ...
- Private Credit.
Where to invest money for the short term?
- Bank savings accounts. Your savings account or your checking account is a no brainer. ...
- Bank Fixed Deposits and Other Deposits. ...
- Short term Debt Funds. ...
- Arbitrage Funds. ...
- Money Market Funds. ...
- Fixed Maturity Plans (FMPs) ...
- Gold ETFs. ...
- Post Office Term /TimeDeposits.
Here are five of the best types of short-term investments for generating income, according to experts:
- Treasury bills.
- Certificates of deposit.
- High-yield savings accounts.
- Money market funds.
- Ultra-short-term bond ETFs.
If you're saving for something you'll need the money for in less than three to five years, saving in a money market fund may make sense for you. Money market funds are ideal for short-term saving because they invest in highly liquid securities with the objective of capital preservation and income.
Do money market accounts ever lose value? ›
There is no direct way to lose money in a money market account. However, it is possible to lose money indirectly. For example, if the interest rate you receive on your account balance can no longer keep up with any penalty fees you may be assessed, the value of the account can fall below the initial deposit.
How much cash should you keep in money market account? ›
Verhaalen often recommends clients maintain a cash reserve that's, at a minimum, the equivalent of six months of income.
How to invest $5000 dollars for quick return? ›
Here are seven expert-recommended strategies for investing $5,000:
- S&P 500 index funds.
- Nasdaq-100 index ETFs.
- International stocks.
- Dividend growth stocks.
- Sector ETFs.
- Thematic ETFs.
- Berkshire Hathaway Inc. (ticker: BRK. A, BRK.B).
