Money Market Mutual Fund Investments Rise And Interest Rates Don’t

The amount of capital that has been invested in the U.S. money market accounts and or mutual funds has risen in the past week. Investors contributed $6.13 billion to these accounts in the week that ended last Wednesday. This brings the total amount of assets in these funds to $2.652 trillion, the Investment Company Institute reported. This happened amidst concerns from many industry analysts that the interest rates for these mutual funds is at an all time low. MoneyMarketAccount.net has been following this issue closely, and they keep tabs on this market. Many analysts were surprised at the growth rates in this area. Usually, when the yield rates are low, investors tend to find other places to put their capital.

The yield on money market mutual funds has been the same for the last month. The Money Fund Report, a subsidiary of iMoneyNet, has reported the seven day average yield to be 0.02%. This is the same yield that was reported last week. The 30 day yields on mutual fund investments is also unchanged, and this is also at 0.02%. Many analysts are concerned about the static interest rate as investments increase. MoneyMarketAccount.net has many blogs that provide detailed account information about the most heavily traded mutual funds. They continually update the information on their pages, and a host of analysts have been commenting on this recent trend. Most analysts express optimism with the way the market has been acting. Some are even surprised that the yields are unchanged. Many expected an influx of capital to lower the yields. This is the one bright spot of the market. Interest rates across the board are at an all time low, and many investors are concerned about this issue.

Interest bearing checking accounts also kept the same interest rates, reported Bankrate.com. The annual percentage yield on these accounts is steady at 0.06%. Bankrate.com also quoted the annual percentage yields for money market accounts to be the same for the last two weeks. This yield rests steady at 0.14%. Market analysts have expressed reserved optimism about this issue. Most would like to see the rates rise a little. However, with the increased amount of capital that has been entering these markets, many believe that these rates may even go down in the coming weeks. MoneyMarketAccount.net has also expressed concern about the recent developments. Many experts fully expect yields to drop in the coming weeks. If the amount of capital continues to increase at present rates, then the yields have to drop a little to compensate for the increased supply of capital.

Bankrate.com has also been monitoring the yields on other types of accounts. They have reported an annual percentage yield of 0.22% on six month certificates of deposit. One year CD’s has also remained steady, and the yield for these accounts is currently at 0.35%. 2-1/2 year CD’s have noticed a recent drop on their yields. Their yield is currently at 0.54%. This is down from the last reporting which pegged the yield of these deposits at 0.55%. Five year CD’s have also had their yields drop. They are down to 1.17%, from the last reports, which had them at 1.18%. This is in keeping with what analysts have expected. When more capital is made available to these accounts, the yields usually decline. This decline is closely related to the increased supply of capital that is available to borrowers. MoneyMarketAccount.net has regularly reported on this issue, and many of their reports have also confirmed the general trend in the marketplace. Investors have been encouraged to keep a portion of their portfolios in these secured accounts.