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Money market funds keep a stable $1.00 share price and pay their income as monthly dividends, so the yield is your whole return. Here are the popular Fidelity, Vanguard and Schwab funds, today's Treasury bill benchmark, and a free calculator for each fund that projects monthly income with dividends reinvested.
As of 2026-10-21. Money market yields, including 7-day yields, track short-term Treasury rates and usually sit slightly below them after fund expenses. This is a benchmark, not any fund's own yield.
SPAXX, FDRXX, VMFXX, VUSXX and SNVXX-type funds hold U.S. government securities and repurchase agreements. They are the default cash (core) positions at many brokers.
Funds such as SPRXX, FZDXX and SWVXX can also hold short-term corporate debt, which usually adds a little yield in exchange for slightly more credit risk.
FTEXX-type funds hold short-term municipal debt; their income is generally exempt from federal income tax, so compare them on an after-tax basis.
The 7-day yield (SEC yield) is the fund's net investment income over the last seven days, annualized and after fund expenses. Because money market funds keep a stable $1.00 share price, the yield is essentially all of your return. It changes every day with short-term interest rates, and fund companies publish it on each fund's page.
Money market funds hold very short-term securities, so their yields move closely with short-term rates set by the Federal Reserve. On 2026-10-21 the 3-month U.S. Treasury bill yielded 4.25%. Government and Treasury money market funds usually yield slightly less than Treasury bills after fund expenses.
SPAXX is Fidelity Government Money Market Fund, which invests in U.S. government securities and repurchase agreements backed by them. FZDXX is the Premium Class of Fidelity Money Market Fund (the same fund as SPRXX), which can also hold short-term corporate debt; the Premium Class requires a larger minimum investment and charges lower expenses, so its yield is usually a little higher. Check both funds' current 7-day yields on Fidelity's site.
Yes. Most money market funds accrue income daily and pay it as a dividend once a month. The dividends can be reinvested automatically into new shares at $1.00 each, so your share count — and next month's income — grows. That is the money market version of a DRIP.
Dividends from taxable money market funds are generally taxed as ordinary income, not at the lower qualified-dividend rate. Funds that hold mostly U.S. Treasuries may be partly exempt from state income tax, and municipal money market funds such as FTEXX pay income that is generally exempt from federal income tax. Check each fund's tax information.
No. A money market fund is an investment fund that aims to keep a $1.00 share price; it is not FDIC-insured. A money market account is a bank deposit that is FDIC-insured up to the legal limit. Their rates are often similar but are set differently.
Not financial advice. Data via Financial Modeling Prep. Distribution yields are based on recent monthly payouts and can differ from a fund's official 7-day yield. Money market funds are not FDIC-insured and can lose value. Full disclaimer →