Are these recommended at all? Is it better than a savings account if I’m not willing to invest everything I have in the market (yet) but want to do better than a savings?
Yes, usually money market accounts give higher interest rates than savings, but since interest rates are slow, most people aren’t keeping their emergency funds there.
Since I dip into my emergency funds often, I keep mine in a checking account.
1 Like
Agreed with @Chadmethner. I think your time horizon matters. If you are saving for retirement that is many years away, allocating to a money market account likely wouldn’t make as much sense. But if you are looking for very low risk with equally low reward for a finite period of time to store your money, a money market fund could make sense.
1 Like