A high-yield money market fund is a pool of corporate bonds and other debt instruments paying a higher rate of interest than conventional savings accounts . The funds are offered by banks and mutual fund companies. They pay regular interest and also provide liquidity to investors, who can withdraw their money freely at any time<\/p>\n
High-Yield Holdings
\n# High-yield funds typically hold long-term corporate bonds. They may invest in foreign corporate bonds, foreign government bonds and “junk bonds” of companies with sub-prime debt ratings. The funds may enter into currency hedging transactions to protect the value of their investments in times of swings in the value of the dollar.
\nMinimum Balance
\n# Money-market funds offer investors greater safety than conventional stocks and bonds. Unlike bank deposits, however, the funds are not insured by the Federal Deposit Insurance Corporation, or FDIC. They require a higher minimum deposit than most bank savings accounts, usually requiring at least a $1,000.00 minimum initial investment. There may be a minimum amount also placed on subsequent investments, which can be waived if the investor sets up regular monthly deposits into the funds from her bank account.
\nLimits and Withdrawals
\n# Money-market funds offer the convenience of check-writing privileges, and many can be accessed with debit cards as well. Some funds set limits on the number of withdrawals account-holders can make each month. Some funds charge fees if the account holder wishes to exceed these limits. The funds also have a minimum balance requirement. If the investor wishes to make a withdrawal that would put the balance below the minimum, the fund may close the account.
\nNet Asset Value
\n# Money-market funds keep a $1 net asset value and strive to keep the share price stable. Although the rate of interest on the fund may fluctuate, its NAV should remain at $1.00. On occasion, particularly in the turbulent credit meltdown of 2008, some money market funds have lost net asset value and fallen below the standard price of $1 per share. This can happen when a significant holding in the fund loses all value because of a corporate bankruptcy.<\/p>\n
source: ehow.com<\/p>\n","protected":false},"excerpt":{"rendered":"
A high-yield money market fund is a pool of corporate bonds and other debt instruments paying a higher rate of interest than conventional savings accounts . The funds are offered by banks and mutual fund companies. They pay regular interest and also provide liquidity to investors, who can withdraw their money freely at any time […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[3514,3508,3507,3509,3510,3512,2661,3511,3513],"class_list":{"0":"post-1124","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-general","7":"tag-high-interest-money-market","8":"tag-high-yield-money-market","9":"tag-high-yield-money-market-accounts","10":"tag-high-yield-money-market-funds","11":"tag-high-yield-money-market-mutual-funds","12":"tag-highest-money-market-rates","13":"tag-money-market","14":"tag-money-market-account","15":"tag-money-market-mutual-funds","16":"entry"},"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/1124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=1124"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/1124\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=1124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=1124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=1124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}