Money market accounts: Weigh safety vs. rate of return

From: Dermatology Times | Date: October 1, 2004| Author: | Copyright information

Bank accounts insured, but yields are higher with mutual funds

Q. What is the difference between a money market account at a bank and a mutual fund company's money market account?

The Federal Deposit Insurance Corporation (FDIC) typically insures certificates of deposit and money market accounts from banks for up to a maximum of $100,000. Money market mutual funds, on the other hand, are not insured or guaranteed, although many of the holdings of the particular fund may be insured or guaranteed against default by the issuer.

Due to the inherent lack of guarantees, money market mutual funds ...

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