Money market funds are used by both large and small investors for various purposes. They are stability-oriented funds that seek to protect your investment, and they have a place in nearly every portfolio.
These funds can be used as a cash reserve or "rainy day fund" that you can draw on at any time. All T. Rowe Price money market funds offer free checkwriting for easy access to your money ($500 minimum).
Investors in stocks and bonds may consider using a money market fund as a "sweep account" for their transactions, including purchasing and selling securities with
T. Rowe Price Brokerage. You may want to "sweep" interest and dividends into a money market fund so they immediately earn a return. Learn more about
T. Rowe Price’s Brokerage services.
You can also use a money market fund as a "parking place" for money that you intend to invest in stocks and bonds while you look for other investment opportunities.
Note that an investment in the T. Rowe Price money market funds is not insured or guaranteed by the FDIC or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds.