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Retirement Savings: How Much Should I Save Each Month?Treasury Clarifies Its Money Market Fund Guaranty Program
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ON BY Ken Tumin
The Treasury issued a new press release on Sunday clarifying its new Guaranty Program for Money Market Funds which they first announced on Friday. Two important clarifications include:
It's important to note that money market funds are different than money market accounts. Money market account is basically the same as a savings account which is FDIC-insured and offered by banks. Money market fund is a mutual fund holding a collection of short-term debt investments, and it is not FDIC insured.
- Eligible funds include both taxable and tax-exempt money market funds
- The temporary guaranty program will be designed to provide coverage to shareholders for amounts held by them in such funds as of the close of business on September 19, 2008.
It's important to note that money market funds are different than money market accounts. Money market account is basically the same as a savings account which is FDIC-insured and offered by banks. Money market fund is a mutual fund holding a collection of short-term debt investments, and it is not FDIC insured.