Money Market Funds < Edge >

Unlike bank accounts, these aren't government-guaranteed; you could lose money, though it's rare.

Often pay significantly more than traditional bank savings.

Money market funds (MMFs) are a low-risk, high-liquidity investment staple, often used as a "cash-plus" strategy to park money while earning more interest than a standard savings account. money market funds

They pay out interest in the form of monthly dividends , which usually track the Federal Reserve's current interest rates. The "Why" and "Why Not" Stability: Historically, share prices stay at $1.00.

A money market fund is a type of that invests in high-quality, short-term debt instruments. Unlike bank accounts, these are investment products typically held in a brokerage account. They pay out interest in the form of

You can usually access your cash within 1–2 business days.

Returns may not keep up with rising costs of living over the long term. Unlike bank accounts

The price doesn't go up like a stock; you only earn the interest. Common Types of Funds What are money market funds? | BlackRock