Money Market Fund question please.....

[JoyJoy]

I hope I'm phrasing this correctly. According to AOL Finance today, 6/3/06, Tiaa-Cref Money Market Funds(TIAXX) has a 7 day yield of 4.72%. TCIXX has a 7 day yield of 4.94%. Is the chief difference in Tiaa-Cref's yields and ED, HSBC, Ing, and GMAC is that one group is 7 day yields and the other is Annual Percentage Yields? We have an account with Tiaa-Cref and wondered if we should transfer some of our funds to HSBC if they are paying more. Which would be the best move to make at this time or just stay put? We use the Tiaa-Cref MMF to pay our property taxes each year.

I am currently learning how to invest and would appreciate any input. Thanks in advance.

[sweeps]

Re: Money Market Fund question please.....

That 7-day yield has already been annualized for you. They give a 7-day yield because the return fluctuates day to day unlike savings accounts, so they only give the returns from the last week.

[JoyJoy]

Re: Money Market Fund question please.....

Thanks for answering my question Sweepsplayer.

Thanks for the explanation. Great 7 day yields to keep us interested for sure!

[sweeps]

Re: Money Market Fund question please.....

The higher yield is for institutional investors I believe. I think you'd only be able to get the lower yield. Also keep in mind those funds are not FDIC-insured. Probably not a big deal, but some people would be nervous about that.

[JoyJoy]

Re: Money Market Fund question please.....

Yes the higher yield is for institutional investors and we are only able to get the lower yield correct.

I was surprised when I first opened an account with Tiaa-Cref (Teachers Insurance and Annuity Association - College Retirement Fund) that teachers would be heavily involved with a MMF that was not with FDIC. However, I put in a few dollars and in all these years I have been rewarded handsomely. What the future will bring, nobody knows. I do want to get our monies close to home since both hubby and I are retirees now. HSBC would be a logical choice for us or even Citibank as they are both located here in NY. GMAC even. I will keep just the minimum in Tiaa-Cref and transfer the rest. Thanks.

Thanks Sweepsplayer for always being willing to help with giving adequate and sound information to me.

Now on to a spooky movie! "Boo" that's playing on Sci-Fi now at 9:00P this Saturday evening!