Are you looking for a safe place to keep your cash—somewhere that will be flexible, low-stress, and gives less interest? Best Money Market Funds might just be your go-to. In today’s world, money market mutual funds have a fantastic combination of liquidity, ease, and a yield that beats checking and saving accounts without the risks associated with investing in stocks.
As of August 28, 2025, a market review highlighted 6 money market funds(Best Money Market Funds) that are top in their class. This is what they found and what you need to know to successfully make your investment.
What Makes Money Market Funds Great?
Considered a mutual fund, a money market fund will ‘park’ your money in assets that are considered short-term and high-quality. These include U.S. government bills and corporate papers. The goal? To offer a stable $1 net asset value (NAV) while still paying you a small but steady return . They’re highly liquid, meaning you can access your money when you need it—almost like a savings account, but with more yield.
Those are big pluses. But remember: these funds are not FDIC-insured. If the fund ever “broke the buck” and went below that $1 value, there could be risk of loss. That’s rare—but it’s worth knowing.
Best Money Market Funds to Watch Right Now
This is a summary of what the spin-off funds, selected by a review of the market, currently focus on, as well as their distinguishing features.
- Vanguard Federal Money Market Fund (VMFXX) Money Yield: 4.21% Expense ratio: 0.11% AUM: $359.2billion Minimum to get started: $3,000 Invests in U.S. government–issued cash and securities—stable (risk-free), sizable asset base.
- Schwab Value Advantage Money Fund (SWVXX) Yield: 4.15% Expense ratio: 0.34% AUM: $244 billion No minimum required!
- JPMorgan Prime Money Market Fund (VMVXX) Yield: 4.04% Expense ratio: 0.48% Assets: $89.2 billion Minimum initial investment: $1,000 Invests in short-term instruments like floating-rate corporate debt and Treasury securities .
- Invesco Government Money Market Fund (INAXX)
Yield: 4.09%
Expense ratio: 0.32%
Assets: $6.4 billion
Minimum: $1,000
Focuses on government-backed investments—very liquid and safe - Fidelity Money Market Fund (SPRXX)
Yield: 4.03%
Expense ratio: 0.42%
Assets: $133.5 billion
No initial minimum—great for flexibility - Vanguard Municipal Money Market Fund (VMSXX)
Yield: 2.77%
Expense ratio: 0.11%
Assets: $17.7 billion
Minimum to start: $3,000
Yield is lower, but it offers federal tax-exemption, making it smart for high earners in upper tax brackets
The Right Fund to Choose(Best Money Market Funds)
The following are just some simple guidelines to consider when making a choice:
1.What size of cash are you starting with?
- In the least you have to invest is 3000 dollars, Vanguard could fit by VMFXX or VMSXX.
- Got less? Schwab, or Fidelity, SWVXX or SPRXX are excellent–no minimums, no trouble.
2. Need low fees?
- Some of the lowest costs are found in Vanguard–excellent when you have a long horizon (although this is an investment of short duration).
3. Looking for tax efficiency?
- The municipal fund (VMSXX) also earns less, but earns you more of what you earn when you are in a high tax bracket.
4. Prioritize safety and simplicity?
- Money funds that own U.S. government documents (such as VMFXX or INAXX) are likely to be as safe as you think.
What is the Difference between Money Market Fund and Savings Account?
Both protect you against the instability of stocks–but there is a difference here and there:
FDIC Insurance?
- Savings accounts are insured by FDIC (up to 250,000 dollars).
- Money market funds are not yet they are usually low risk.
Liquidity?
- Both offer good access. You may have restrictions or fees on your platform with funds that are liquid.
Yields?
- Money market funds are usually more profitable than savings accounts- at least at this point in time when the rates are still high.
Bottom Line: Why Now is a Good Time to Think about These Funds
Vanguard found that a great number of Americans continue to make less than 3 percent on their cash- even though there are many safe and easy methods to make 4 percent or more. In the meantime, as a market review list reveals, numerous funds are currently achieving (without market risk) in excess of 4%.
Ready to take action? Begin with a budget and tax-appropriate fund. Review fees, yield, and liquidity features. And idle cash put to work–it need not sit about.
