Hi all,
Getting worried about the current US administration and eliminating departments. Read some articles of the CFPB and FDIC starting to be targeted. What would be the safest money market fund to put money into? Been looking SPRXX, SWVXX, VUSXX and FDLXX for WA state tax.
Made a chart below to compare some of the top choices:
|**Fund Name**|**Type**|**7-Day SEC Yield**|**Risk Level**|**State Tax Benefits?**|**FDIC Impact**|
|:-|:-|:-|:-|:-|:-|
|**Fidelity Money Market Fund (SPRXX)**|Prime|**4.39%**|Moderate|No|No Protection|
|**Vanguard Treasury Money Market Fund (VUSXX)**|Treasury|**4.27%**|Very Low|**Yes**|**No Impact (Treasuries are backed by the U.S. Govt.)**|
|**Vanguard Federal Money Market Fund (VMFXX)**|Government|4.27%|Low|No|No Protection|
|**Schwab Value Advantage Money Fund (SWVXX)**|Prime|4.19%|Moderate|No|No Protection|
|**Schwab Government Money Fund (SNVXX)**|Government|4.10%|Low|No|No Protection|
|**Fidelity Government Money Market Fund (SPAXX)**|Government|4.07%|Low|No|No Protection|
|**Fidelity Treasury Only Money Market Fund (FDLXX)**|Treasury|**4.20%**|Very Low|**Yes**|**No Impact (Treasuries are backed by the U.S. Govt.)**|
|**Quontic Money Market Account**|Money Market Account|**4.75%**|Low|No|**High Impact (No FDIC if eliminated)**|
|**First Foundation Bank Online MMA**|Money Market Account|4.50%|Low|No|**High Impact (No FDIC if eliminated)**|
|**Vio Bank Cornerstone MMA**|Money Market Account|4.46%|Low|No|**High Impact (No FDIC if eliminated)**|
|**Zynlo Money Market Account**|Money Market Account|4.40%|Low|No|**High Impact (No FDIC if eliminated)**|
|**Sallie Mae MMA**|Money Market Account|3.90%|Low|No|**High Impact (No FDIC if eliminated)**|
Safest Funds If FDIC Is Eliminated
1. **Vanguard Treasury Money Market Fund (VUSXX)** – **Best choice for safety**, **4.27% yield**, **state tax benefits**.
2. **Fidelity Treasury Only Money Market Fund (FDLXX)** – **Very safe**, **4.20% yield**, **state tax benefits**.
3. **Vanguard Federal Money Market Fund (VMFXX)** – **Slightly lower safety than Treasuries, 4.27% yield**.
What are others thoughts?