Re: Money market account recommendations?

From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Money market account recommendations?
Date: Thu, 14 Jan 1999 21:07:19 -0500

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>The interest rate on my money market account (not fund) has
>steadily declined and now is 3.13%.  I am looking for a new
>FDIC insured account for my super safe money.  Any ideas??

Yeah.  Bail on bank money-market accounts and move to a money-market
fund.  The chances of losing money are infinitesimal (no customers of
a retail MMF have ever lost money).  You can make that infinitesimal
even smaller by using an MMF that invests only in US Treasury
securites, which gives the added bonus of being exempt from state &
local income and intangibles taxes.  Depending on how liquid this
money has to be, you could also buy 13, 26, or 52 week Treasury bills
commission-free directly from the govt (minimum purchase has been
dropped from $10,000 to a very affordable $1,000) which would be even
safer than FDIC.  You could even ladder the purchases so that instead
of the whole amount of your money being tied up for 13 (or 26, or...)
weeks, you could set things up so that (say) one-fourth of your money
came free every three weeks, etc.  T-bills are also exempt from state
& local income and intangibles taxes.

Rich Carreiro
rlcarr@animato.pn.com
P5-100/RedHat Linux 4.2

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