Milestone Market Update - Money Market Rates

August 07, 2023

We hope this message finds you well!

As you are probably aware, The Federal Reserve, the nation's central bank, has been raising interest rates—a move that has broader implications than one might initially realize. Beyond impacting loans and mortgages, these rate hikes directly affect how much interest various savings vehicles can offer. For savers, this has created an excellent opportunity.

1. Money Market Rates on the Rise

Money market funds, which are mutual funds that invest in short-term, high-quality debt securities primarily issued by the U.S. government, have seen a positive upswing in their returns due to these rate increases. This means they are currently offering more attractive yields than they have in recent memory. Many money market funds are now offering returns in the 5% range and are fully liquid, so investors can access funds very easily.

2. Rethinking Traditional Savings Accounts

For many, a regular savings account has long been the preferred destination for stashing away hard-earned money. However, with the current uptrend in money market rates, there's a growing disparity between the interest one can earn in traditional savings accounts and that in money market funds.

The question then arises: Is your money working as hard for you as it could be?

3. Navigating Your Financial Journey with Confidence

As always, it's essential to align financial decisions with your unique situation, goals, and comfort levels. The shifting landscape presents both opportunities and decisions, and we're here to guide you through them.

We strongly recommend taking a moment to review your current savings strategy. And if you're curious about the opportunities money market funds present or have any questions about how to navigate the current environment, we're just a call or email away.

Warm Regards,

The Milestone Team