Question: Can I lose money on a money market account?

Because money market funds are investments and not savings accounts, theres no guarantee on earnings and theres even the possibility you might lose money. “Its a very good short-term place to keep money you need to keep liquid, but you will lose money in terms of the cost of the things you buy.”

Can you lose principal in a money market fund?

Money market funds are offered by mutual fund and exchange-traded fund issuers overseen by the Securities and Exchange Commission, and in very rare cases, holders can lose their principal, like any other investment.

Which is safer CD or money market account?

CD rates are typically higher than money market account rates. Whats the difference: CD vs. Both CDs and MMAs are federally insured savings accounts, so theyre equally safe. Up to $250,000 gets insured in your name across your individually owned accounts at one bank or credit union.

Is a money market account a good idea?

Thats because they can invest in low-risk, stable funds like Treasury bonds (T-bonds) and typically pay higher rates of interest than a savings account. While the returns may not be not much, money market accounts are still a pretty good choice during times of uncertainty.

Should I keep money in a money market account?

Thats because they can invest in low-risk, stable funds like Treasury bonds (T-bonds) and typically pay higher rates of interest than a savings account. While the returns may not be not much, money market accounts are still a pretty good choice during times of uncertainty.

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