Article: Money funds fine receptacles

IT'S HARD to believe that just 17 short months ago I was hyping money market mutual funds for their "attractive" yields of about 1.5 percent. How times have changed over that short period, which really means: How interest rates have climbed!

With rates soaring sharply to about 4.5 percent and headed to 5 percent, thanks to the Federal Reserve, money fund assets are currently $2.05 trillion, up from $1.8 trillion in November 2004, an increase of better than $2 billion a day.

Look at the differences thisfrom Business 1

way. With $3,000 in Vanguard Federal Money Market Fund back in November 2004, you earned $45 a year, and today you can earn $135. In Vanguard Admiral Treasury Money Market ...

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