MONEY MARKET EQUILIBRIUM
Emergency fundsGiven the inherent nature of money market checking an emergency fund, a CD would be a poor financial instrument for it. Money market funds allow your emergency funds to at least maintain their real value while providing the requisite liquidity necessary. That there are a few reasons to choose funds over CDs does not indicate that money market funds are better. With the economic downturn of 2008, money market checking yields have fallen while CD rates have generally remained stable. Based on their regulations, losses in the MMFs are rare, but money market equilibrium and technically, not impossible. What this suggests is that there could be a few reasons to choose money market checking Certificates of Deposit over MMFs as make lots of money well. Still, if you are faced with money market checkinginvestment-horizon uncertainty, selecting an emergency fund or money market equilibrium and need a balance between liquidity and us paper money as well returns; the MMF should prevail.
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