Money Market Funds?

[spiderweb]

Is it the right time to buy Money Market Fund? And whats the minimum Units can we buy?

[MisterJ]

Depends who you go through.
As the flight to quality has been unprecedented recently (i.e. people are holding much more cash than usual), the yield on money market funds has dramatically dropped.

My fiance has her accounts (non-reg'd & reg'd) through TD and her money market funds are yielding 0%. That's right, 0%.

If you can get access to Manulife's Savings Account (MIP510), it's currently yielding 0.95%. That's one of the best that you'll probably be able to find out there right now. There's no minimum purchase, and there's a one day settlement.

From all this the take home is this - don't hold a money market fund for yield, hold it for liquidity.

[Jon Lai]

Min = 0 units

[joe1487]

High interest savings accounts > Money market funds

[MisterJ]

High interest savings accounts > Money market funds

Greater in which way? I'm not sure your statement really helps here.
Pls. explain.

[MisterJ]

Pays higher interest. CDIC insured (unlike Money Market funds - see your first reply to this thread).

Thanks for pointing that out. I didn't realize my mistake on that until now.
You're right, the money market funds are not CDIC insured but the savings accounts are.

Depending on where your money is, you may not have access to a high interest savings account, and to be honest, I'm not sure it's worth the hassle just for something less than 1% (nearly half of which would probably be taxable anyways). Again, I wouldn't buy a money market fund or put my money into a high interest savings account for the interest. I'd put it in for liquidity and peace of mind.

Spider - you shouldn't time putting your money into money market funds. That's not their purpose. Their purpose is to provide you with a temporary place to park your money while yielding you a small amount of interest in the interim.

[spiderweb]

Thanks for the advice!