Here’s how you could earn more on your cash (without buying stocks)
Your money can grow just by sitting in your Plynk account.
July 20, 2023
Did you know you can put your money to work even if you’re not ready to invest?
When you deposit money into your Plynk brokerage account, it’s automatically put into a money market fund.
What’s a money market fund?
A money market fund is technically a type of mutual fund that’s considered low-risk, easy to access, and can even help your money earn some interest over time. You can think of it like a holding place for your cash, where it might do better than it would elsewhere.
Which money market fund is my money held in at Plynk?
At Plynk, the money you deposit into your brokerage account is held in the Fidelity Government Money Market Fund. This is sometimes called your “core fund” or your “core position.”
You can read more about the fund here, and see the current rate.
What can I do with the cash sitting in a money market fund?
You can use your cash in that fund to invest in stocks, ETFs, and/or mutual funds. Or you could decide to keep it there to earn some potential interest.
Is my cash safe in a money market fund?
Money market funds are historically known for being a low-risk, stable place to keep your cash, but they’re not entirely risk free. There’s technically a chance that it could lose value.
Money market funds are not insured by Federal Deposit Insurance Corporation (FDIC) like most traditional savings accounts, which would replace the exact value of the cash if the bank were to go under. Instead, they are covered by the Securities Investor Protection Corporation (SIPC).*
The bottom line: If you’re looking for a place to keep your cash, that’s relatively low-risk, easy to access, and that offers the opportunity for it to grow (and you’re comfortable taking on a slight amount of risk), consider the money market fund available to you in your Plynk brokerage account.