The National Directory of Certified Public Accountants

Ask A CPA - Investments & Financial Planning

Are My Money Market Mutual Funds Insured ?

You have probably heard that your bank deposits are insured by the Federal Deposit Insurance Corporation (FDIC). You may be surprised to learn that, while your money market deposit account is insured, your money market mutual fund is not. The SEC does not guarantee mutual funds. The FDIC does not guarantee mutual funds either, and this is true even if you purchased your mutual fund at a bank. In fact, when you purchase a mutual fund at a bank they are required to tell you that your investment is not FDIC insured and that your investment is not guaranteed by the bank.

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