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why are money market funds so low now?

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    why are money market funds so low now?

    I noticed my paypal account is getting like 1 point something. lol (I never leave more than a couple hundred in it)

    #2
    Rates dropped like a rock ever since the FED dropped the target rate to 0% to 0.25% range two weeks ago. The good news is that if you have a mortgage now is the time to refinance.

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      #3
      I am still getting 5.01%, and crossing my fingers hard that they won't change the rate!

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        #4
        With interest rates falling so low, it will soon cost more for fund companies to run some money market funds than their investments. Rather than step in to make investors whole or permit their funds to break the buck, some money funds will likely close.

        The average yield on a money market fund is now 0.94%, versus 4.16% a year ago. That is causing a serious problem for many money market funds, since the average money market fund charges 70 basis points in annual fees. Between the yield and the fee, investors are losing money.

        If the Federal Reserve moves the key fed funds rate to 50 basis point, the number of funds likely to close will increase much more.

        Regards

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