Unlike bank accounts, these aren't government-guaranteed; you could lose money, though it's rare.
Often pay significantly more than traditional bank savings. money market funds
Money market funds (MMFs) are a low-risk, high-liquidity investment staple, often used as a "cash-plus" strategy to park money while earning more interest than a standard savings account. Unlike bank accounts
To preserve your initial investment (maintaining a stable $1.00 Net Asset Value per share) while providing daily liquidity. these aren't government-guaranteed
They pay out interest in the form of monthly dividends , which usually track the Federal Reserve's current interest rates. The "Why" and "Why Not" Stability: Historically, share prices stay at $1.00.