Marc
Recycles dryer sheets
Sure. But the easiest comparison is the current interest rate, without looking at past rates or return. The current rate is what both the savings account and the MM fund will earn over the next 12 months assuming no additional interest rate changes. That’s why folks only compare current yield.
So if Discover bank is yielding 1.5% today, and FZDXX is yielding 1.83% today, 0.33% is the difference.
Of course we have to check back frequently in periods of changing interest rates like now, because who knows how things might compare 6 months from now?
I’m not considering FZDXX at the moment because of the $100K minimum. But as other CDs mature I suppose it is an option. However, I have funds I can let sit for 3 months or more and T-bills are paying a bit more - over 1.9% for 13 week (3 month).
I see YTD quoted for FZDXX as 0.66% as of 5/31 so they seem to be taking May interest into account - 5 months earnings.
Fidelity SPRXX current yield is 1.72% and has only $2500 minimum investment. Very easy to move back and forth to checking.
Marc