Money market mutual funds versus On-line savings account?
Hi there … Assuming one gets the same yield (pre-tax) from money market mutual funds & on-line savings accounts, is there any advantage of one over the other? For example, is the tax treatment of earnings different? Apart from feedback, if u can refer me to any article/publication, that would be gr8 too. Thanks, in advance, for your help!
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Both are designed to keep your money liquid. The MM Mutual fund is not insured and while they are designed to try to prevent losses they are not guaranteed. The on line savings account, if you are talking about an FDIC insured bank, are insured up to current FDIC levels. http://sify.com/finance/fullstory.php?id=14573815