Our listing of the best money market funds relies on several key factors. Low investment minimums make these funds accessible to any investor, and decent yields, low risk and affordable expense ratios are all important factors. Our criteria excluded funds that charge liquidity fees or impose limits on redemptions.
We identified eight funds with seven-day yields of 3.7% or more, reasonable expense ratios of under 0.5% and minimum investment requirements of $10,000 or less.
When researching money market funds, the seven-day yield is the industry standard for making comparisons among funds. It considers fund distributions plus appreciation, minus average fees over seven days—and then projects this average forward over the next 12 months.
Among the funds we screened, the majority with the most attractive seven-day yields required high investment minimums or were limited to institutional investors only. Many of these funds also imposed limitations on redemptions and charged liquidity fees.
While money market funds are considered extremely low-risk instruments and invest heavily in cash and government securities, the Federal Deposit Insurance Corporation (FDIC) does not guarantee these funds.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Rates Investing Products.