What is the 7 day yield on the money market?
The Standardized 7-Day Current Yield is the average income return over the previous seven days. It is the Fund's total income net of expenses, divided by the total number of outstanding shares.
What is the 7-day yield? The 7-Day Yield represents the annualized fund yield based on the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of all applicable waivers. Absent such waivers, the fund's yield would have been lower.
The calculation is performed as follows: Take the net interest income earned by the fund over the last 7 days and subtract 7 days of management fees. Divide that dollar amount by the average size of the fund's investments over the same 7 days. Multiply by 365/7 to give the 7-day SEC yield.
| Label | Value |
|---|---|
| Total Net Assets | N/A |
| 7 Day Yield | 5.1736 |
| Gross Seven Day Yield | N/A |
| Min Initial Subscription | N/A |
What Is a Typical Money Market Yield? Money market accounts and instruments typically yield between 0.01% and 4%. This depends on the amount of money deposited, as some institutions require a higher deposit to earn the higher interest rate.
Low Risk and Short Duration
As stated above, money market funds are often considered less risky than their stock and bond counterparts. That's because these types of funds typically invest in low-risk vehicles such as certificates of deposit (CDs), Treasury bills (T-Bills), and short-term commercial paper.
The Standardized 7-Day Current Yield is the average income return over the previous seven days. It is the Fund's total income net of expenses, divided by the total number of outstanding shares.
The name itself can be slightly misleading — a 7-day yield doesn't represent what you could make in a week. Instead, it adjusts the fund's average earnings over the previous 7 days to what it would look like as a percentage for a full year (if the rate stayed the same).
*Traditional bank savings accounts calculate interest using annual percentage yield (APY), while money market funds use the 7-day SEC yield formula. APY is the real rate of return earned on an investment, considering the effect of compounding interest.
What is the 7-day yield for Snvxx?
| Fund Name | Ticker | 7-day yield1 |
|---|---|---|
| Schwab Government Money Fund - Investor Shares | SNVXX | 5.03% |
| Schwab Government Money Fund - Ultra Shares | SGUXX | 5.18% |
| Schwab Treasury Obligations Money Fund - Investor Shares | SNOXX | 5.03% |
| Schwab Treasury Obligations Money Fund - Ultra Shares | SCOXX | 5.18% |
| Fund | Expense Ratio | 7-day SEC yield as of April 4 |
|---|---|---|
| Schwab Treasury Obligations Money Fund – Investor Shares (SNOXX) | 0.34% | 5.0% |
| Schwab U.S. Treasury Money Fund – Investor Shares (SNSXX) | 0.34% | 5.0% |
| Schwab Municipal Money Fund (SWTXX) | 0.34% | 3.4% |
While the Schwab Bank Investor Savings account offers a slightly higher APY (0.48%) than the national average savings rate of 0.47% (as of March 18, 2024), it is not considered to be a high-yield savings account. How do you open a Charles Schwab savings account?
| Institution | APY* | Minimum opening deposit |
|---|---|---|
| Ally Bank | 4.25% | $0 |
| UFB Direct | 5.25% | $0 |
| Redneck Bank | 4.9% | $500 |
| First Foundation Bank | 4.9% | $1000 |
Many accounts have monthly fees
Another drawback to remember is that while they have high yields, money market accounts can also come with cumbersome fees. Many banks and credit unions will impose monthly fees just for the upkeep of your account.
- Brilliant Bank – 5.35% APY.
- UFB Direct – 5.25% APY.
- Amalgamated Bank – 5.25% APY.
- Republic Bank of Chicago – 5.21% APY.
- Merchants Bank of Indiana – 5.00% APY.
- BluPeak Credit Union – 5.00% APY*
- Quontic Bank – 5.00% APY.
- Northern Bank Direct – 4.95% APY.
While money markets, including SPAXX, are not eligible for Federal Deposit Insurance Corporation (FDIC), they are covered by the Securities Investor Protection Corporation (SIPC).
| Fund Return | Index (Barclay US Agg) | |
|---|---|---|
| YTD | 1.24% | -0.78% |
| 1yr | 5.04% | 2.37% |
| 3yr 2 | 2.42% | -2.48% |
| 5yr 2 | 1.77% | 0.34% |
SPAXX specifically holds U.S. government securities and repurchase agreements that are seen as very low risk but are not guaranteed by the US Treasury. Money market funds typically have low interest rates, comparable with a high-yield savings account.
It's technically possible to lose money in a market account, but not in the same way you can lose money in an investment account. Depending on the terms of your money market account, you could lose value to fees and inflation.
Is CD safer than money market?
Both CDs and MMAs are federally insured savings accounts, so they're equally safe.
Key takeaways
Disadvantages of money market accounts may include hefty minimum balance requirements and monthly fees — and you might be able to find better yields with other deposit accounts.
What Is a Good NET Rental Yield? After all additional costs have been accounted for, a good net rental yield should be between 5% to 8%. A rental yield of this figure ensures the investor is still making a significant return on their investment, even after mortgage payments, taxes, and more.
What Is a Good Dividend Yield? Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment. Your own investment goals should also play a big role in deciding what a good dividend yield is for you.
For stocks, yield is calculated as a security's price increase plus dividends, divided by the purchase price.
