My view, in sync with North, is that money should be kept with the crony bankster banks, e.g., Citibank, Chase, since the government will protect these banks and your money will be quite safe up to at least the $250,000 FDIC insurance.
Short-term T-bills are paying about .25%. This creates a problem for moneyAnother point that needs to be kept in mind is that if money market funds are held through a stock brokerage firm account, the investments in the brokerage account, including money markets, are insured up to $500,000 by SIPIC (cash $250,000) but it may be many months before the investments are released to you if something goes wrong with your brokerage firm.
market funds: their costs are barely being funded by the interest they get on
They pay low rates to investors -- no better than a bank or credit union.
If we get to negative rates, where Europe is today, then money market funds
will suffer losses if they do not "break the buck." They will either impose
capital losses on investors or else go bankrupt.
New SEC rules go into effect in October. They will allow restrictions on
withdrawals. Read about this here:
Print it out. Read it. Forewarned is forearmed.
Some funds are rewriting their rules. They reserve the right to limit
redemptions. They are sending out new agreements.
If you have money in a money market fund, read the new fine print. You do not
want your money locked in.
An FDIC-insured account has no such restrictions.
A word to the wise is sufficient.
Gary "FDIC-Insured" North