Money funds are wealth management products, which are different from bank deposits. Don't get me wrong! We deposit the money directly into the bank, and the bank must ensure the safety of the depositor's principal and pay interest. When we buy a money fund, we entrust the money to financial institutions for investment, so as to obtain income. Financial institutions themselves do not bear the responsibility of repaying principal and interest, but only help us invest and charge a certain fee.

Secondly, for banks, we are only small retail investors and have no bargaining power, so the deposit interest rate is very low. Money fund is to collect all people's money, from small retail investors to large retail investors. With bargaining power, interest rates will naturally be higher.