Money fund or money market fund: an open-end fund, which mainly invests in short-term monetary instruments, such as treasury bonds, large negotiable certificates of deposit, commercial paper, etc. Good liquidity, high safety, low risk and low investment cost. In foreign countries, especially the United States, money market funds have become the main force in the fund market, which is called quasi-savings. It can bring relatively safe value-added income to small and medium-sized investors, and at the same time, it has the same liquidity as ordinary open-end funds and is almost as convenient as bank demand savings.

Money funds have both the interest rate of time deposits and the convenience of current deposits. As a new investment method, money fund mainly invests in short-term financial instruments such as financial bonds, corporate bonds, short-term national debt and repurchase. And T+ 1 can be realized, that is, it will be redeemed today and received the next day, and the purchase bottom line is only 1000 yuan.

But in terms of income, the average income of money funds is not as high as that of time deposits. The bank's fixed deposit rate in March was 3.33%, but the money fund's interest rate per 10,000 yuan was equivalent to about 2.7%. Even if the income of the fund does not need to be taxed, interest income also needs to be taxed, so this comparison should be obvious. Monetary funds are more flexible than time deposits. If the time deposit is withdrawn midway, it can only be calculated at the deposit interest rate of 0.72%. The interest rate of monetary funds remains unchanged.

Unless you choose a better money fund.