Why put it in the bank if all that is happening is your money slowly becoming worth less rather than turning into more via interest in a savings account.
Why put it in the bank if all that is happening is your money slowly becoming worth less rather than turning into more via interest in a savings account.
Also, liquidity preference predicts that people will save an unlimited amount of money at 0% interest if they have sufficient income that exceeds how much they intend to spend.
https://www.schwab.com/money-market-funds
https://www.morganstanley.com/wealth-investmentstrategies/ra...
I thought what you thought when I first read this.
Sure, if your money market fund is backed by junk bonds as collateral maybe. But that’s hardly the same as an FDIC insured deposit or UST collateralized fund. The yields on those are not great no matter how much money you have to invest.