Many investors are focused on the day-to-day performance of the stock market, and while this is certainly where the excitement is, you should also pay attention to the cash in your portfolio.Most investors keep cash in a sweep account, which is where dividends and proceeds from trades are placed by the broker until they are reinvested. But this is probably not the best option for all your cash. The yields may be next to nothing, and even now that the Federal Reserve is cutting short-term interest rates, there are other places to park your cash that measure up well against the yields on investment-grade bonds, with much less risk.
|Money Market Fund||Ticker Symbol||Minimum to Open||7 Day Yield|
|Dreyfus 100% U.S. Treasury Money Market||DUSXX||$2,500||3.29%|
|Fidelity U.S. Government Reserves||FGRXX||$2,500||4.47%|
|Fidelity U.S. Treasury Money Market||FDLXX||$2,500||3.36%|
|Vanguard Federal Money Market Fund||VMFXX||$3,000||4.60%|
|Vanguard Treasury Money Market Fund||VMPXX||$3,000||3.79%|
Bank Money Market Savings Account These bank deposit accounts are insured by the FDIC but usually yield considerably less than non-bank money market funds. In E*Trade's case, the Complete Savings Account's yield of 5.05% compares very well to money fund rates. You can read