Money Market: Prime vs Government?

[BarbWire]

I'm looking for MM funds at Fidelity and/or Schwab to park about $100K for an unknown period (less than 2 years).


My choices are either Government MM or Prime MM. Yields on Prime are a tad higher than Government.

Fido: SPAXX vs SPRXX
CS: SNVXX vs SWVXX


So how/why should I select Government over Prime, or vice versa? Or does it really matter?


Thanks!

 

[pb4uski]

Not sure that it matters. I prefer SWVXX.

 

[Happyras]

I use FZDXX at Fido. Initial is 100K but balance maintained is 10K min, higher yield with cash like liquidity. Why not simply buy a 1 or 2 yr treasury, pretty easy to sell when needed in part.

 

[RunningBum]

Current yield on SPRXX is 5.05%.
Income = $5050.
Reduce by fed & state taxes
Suppose 12% fed tax bracket, = $606 fed taxes
Suppose 6% state tax bracket = $303 state taxes
Net after taxes = $4141

Current yield on SPAXX is 4.95%
Income = $4950
Reduce by fed taxes only
Suppose 12% fed tax bracket, = $594
Net after taxes = $4356

I think my math is right, but you have to fill in your own tax rates anyway.

 

[BarbWire]

Thank you. pb4uski -- I was drawing the same conclusion but figured there might be a subtle but important difference that I was missing.



I don't really want to spend a lot of time researching unless this is something on which I really need to educate myself. There is way too much other stuff I still need to learn!


As for FZDXX...there is a bewildering array of MMFunds at Fido. I haven't sorted through all of them yet.

 

[ShokWaveRider]

Schwab SWVXX is 5.21%

 

[xlf11]

FZFXX -same return and expense ratio as SPAXX (no need of $100k as FZDXX), but Treasury only so more tax advantage for state income treatment if any.