How do you choose a money market fund?

[Poiuyt]

I'm looking for a place to park some money for about a year, but I would like to get more interest than a savings account would give me. Is there any big difference between the different MM funds? Can I just go to bankrate.com and pick one of the higher yielding funds? It's my understanding that they are not FDIC insured, but they are still relatively safe. Is that accurate?

Thanks

[WCGreen]

1. There are some high yielding bonds available from

some banks.... Shop... If you can tie it up for at least 9 months, you should be able to get a pretty good yield and still have it be covered by FDIC.....

[Squatch]

7. But in a period of rising interest rates, not a good time to buy

fixed income securities like bonds.

[WCGreen]

8. You can get them for as little as nine months.....

A sure bet that they will be better than MM funds...

[mtowngman]

2. just did this last week

went to the bank I do business with intending to open a mm fund, turned out this particular bank offered what it called a "premier savings account" with an interest rate about double what their mm fund paid. There was a minimum balance required. Also put some in a 9 month cd.

[swag]

3. Some info can be found at

http://www.bankrate.com

specifically, http://www.bankrate.com/brm/rate/mmmf_highratehome.asp?params=US,416&product=33&sort=2

If I wanted to park some cash for a year, I would probably just take the easy no-fee way and do it at http://www.hsbcdirect.com, which currently has the highest yields (4.7%) and lowest fees ($0.00) on non-jumbo savings accounts/MMAs.

The Fed's not done raising yet, so hsbcdirect's rates will go up a couple more clicks.

FDIC-insured, but read the terms thoroughly.

Good luck, by the way. I'm not a finance professional, and I do not give investment advice.

[Delarage]

4. I like ING Direct

I jumped to Emigrant Direct once because they had slightly higher rates, but they severely pissed me off with a problem and their customer service. So screw Emigrant Direct--they're a bunch of useless assholes.

[swag]

5. I'm with ING Direct myself.

Everything works wonderfully, and they really pioneered the consumer-oriented on-line bank.

And they have that new money higher APR promo going on right now.

But HSBCdirect will get you about 90 more basis points on the savings side.

[Poiuyt]

6. Thanks!

[no name no slogan]

9. I have a hunch

you are (or were at one time in the past) a registered representative with the NASD?

[Strong Atheist]

10. After you have tacked the list to the cork board, you put on your

blindfold, and pick up your dart ...

[Alleycat]

11. Vanguard

They have pretty good low fees, low balance minimums and great customer service. Check them out out on line.