Good ? It gives 4.9% APY return . One can withdraw cash from it and get cash next day . Should I buy it ?
What happens to the fund if Charles Schwab goes bankrupt?
This is a sign that banks are desperate for cash, even the big ones.
So what is a better option ? A CD , savings account or mutual fund like the above . I have some money sitting and want to invest it . Please advice .
CDs are good but typically less liquid. You can resell them if you buy through a broker but there’s no guarantee you can sell above par. Money market mutual fund is the best for liquidity if you don’t mind actively trading. Otherwise a money market account at a bank could be good if the rate is competitive. But there are typically limits on how often you can withdraw funds
Personally I’d go TBills over CDs. The yields are the same or higher in some cases and there’s no real counterparty risk
Have you checked out fidelity + SPAXX
I don’t think you necessarily get money the next day. It’s a mutual fund so you have to sell it. But it’s basically liquid.
yes money market funds are extremely liquid. mutual fund orders execute at the market close. the funds will settle by the next open
I own a good bit of SNSXX. Use it to park money before I buy TBills or move it to checking. I had the prime fund before but it only had a slightly higher APY but with more risk. Less liquid assets in that fund. Lotta big bank CDs and some scary outflows. I’m sticking with the treasury money market fund for now
Citbank is giving 11 month no penalty CD at 4.8 percent.
Do you get the money next day or instantaneously?
Next day .