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Money Market Accounts Have Big Advantages Over Money Market Funds

Wednesday, June 13, 2012 - 6:29 AM
I think most DA readers understand the differences between money market funds and money market accounts. In addition to reviewing the differences, this MONEY Magazine article does a good job to show why there's little reason to use money market funds instead of money market and savings accounts as a place to keep excess cash.
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,633
1. Wednesday, June 13, 2012 - 8:32 AM
Walter Updegrave: "I still own money funds, mostly for the convenience of having my ready cash with the same firm that holds my other investments."

That's the purpose of maintaining a money market fund for most people. A convenient way to move funds in and out of the markets. Having dividends deposited directly into a money market fund is very useful for investors holding stock and bond portfolios for current income. They can easily write a check from the money market fund account and deposit that income into an FDIC insured deposit account if they prefer.
ShorebreakShorebreak2,675 posts since
Apr 6, 2010
Rep Points: 14,523