Best Money Market Funds

A money market fund is where most brokerage cash ends up, and the yield gap between funds is real. As of October 6, 2026, the six large retail funds we checked paid between 3.49% and 3.83% on a 7-day basis, with expense ratios from 0.07% to 0.42%. On $50,000, that gap is about $170 a year at today’s rates (our arithmetic), before any change in yields.

Yields as of October 6, 2026. Every 7-day yield, expense ratio, minimum and net-asset figure on this page comes from the fund company’s own fund page, loaded October 7, 2026. Industry averages come from the SEC’s Money Market Fund Statistics for August 2026, and bank rate averages from the FDIC’s national rates for September 2026. Yields are variable, can change daily and are not guaranteed. Money market funds are not FDIC-insured and can lose money. This page is general information, not financial advice. Some links on Money 8020 are affiliate or partner links; see our advertiser and affiliate disclosure.

Quick answer: which money market fund is best?

• Highest yield, lowest cost: Vanguard Treasury Money Market Fund (VUSXX), 3.83% 7-day SEC yield and a 0.07% expense ratio, $3,000 minimum.
• Best default at Vanguard: Vanguard Federal Money Market Fund (VMFXX), 3.80% and 0.11%.
• No minimum: Schwab Prime Advantage Money Fund (SWVXX), 3.70% with no minimum initial investment, for Schwab clients.
• At Fidelity: Fidelity Money Market Fund (SPRXX) pays more (3.57%); Fidelity Government Money Market Fund (SPAXX) (3.49%) avoids prime-fund redemption fees.

How we ranked these funds

We ranked on five things, in this order:

1. 7-day yield on October 6, 2026, as listed by the fund company. Vanguard reports a 7-day SEC yield; Fidelity and Schwab report a 7-day yield. Both summarize the fund’s income over the most recent seven days, after fund expenses.
2. Expense ratio, because it comes straight out of the yield every day.
3. Minimum to invest, since a $3,000 minimum matters if you are just starting.
4. Fund type and redemption rules. Government and Treasury funds hold the safest short-term debt; prime funds can buy corporate debt and may charge a fee on redemptions.
5. Fit with your brokerage. A fund is easiest to use where your account already lives. Schwab says its money funds are available only to Schwab clients.

We do not use aggregator roundups or ratings for any figure on this page.

Comparison table: money market funds (October 6, 2026)

Sources: each fund company’s fund page, yields as of October 6, 2026. Vanguard yields are 7-day SEC yields. Vanguard net assets are fund totals as of September 30, 2026; Fidelity figures are portfolio net assets as of September 30, 2026; Schwab’s is total net assets as of October 6, 2026. Vanguard expense ratios are dated December 19, 2025 on its pages.

What each fund would earn on $10,000

This table applies each fund’s October 6 yield to a $10,000 balance for one year. It is a rough estimate for illustration only, because 7-day yields change daily and real returns depend on what rates do over the year.

The dollar figures are our arithmetic on the listed yields. Because yields are already after fund expenses, you don’t subtract the expense ratio again.

1. Vanguard Treasury Money Market Fund (VUSXX): best overall

Vanguard listed a 3.83% 7-day SEC yield for VUSXX as of October 6, 2026, with a 0.07% expense ratio and a $3,000 minimum. The fund had $114.4 billion in total net assets on September 30, 2026, and dates back to December 14, 1992.

VUSXX tops the list because it combines the highest yield we found with the lowest cost. Vanguard says the fund invests at least 80% of its assets in Treasury bills and repurchase agreements fully collateralized by U.S. Treasury securities. Because so much of the income comes from Treasuries, investors in high-tax states may keep more after tax, though Vanguard notes that income from repurchase agreements with the Federal Reserve is generally subject to state and local income taxes. The trade-offs are the $3,000 minimum and the fact that it is most convenient inside a Vanguard account. See the full VUSXX review.

2. Vanguard Federal Money Market Fund (VMFXX): best government fund for Vanguard investors

Vanguard listed a 3.80% 7-day SEC yield for VMFXX as of October 6, 2026, a 0.11% expense ratio and a $3,000 minimum. At $377.8 billion in total net assets, it is the largest Vanguard fund on this list, with an inception date of July 13, 1981.

Vanguard says VMFXX invests at least 99.5% of total assets in cash, U.S. government securities and repurchase agreements collateralized solely by government securities or cash, keeps a dollar-weighted average maturity of 60 days or less, and a dollar-weighted average life of 120 days or less. Vanguard also notes that some of its income, from repurchase agreements and certain other securities, is generally subject to state and local taxes. It trails VUSXX by only 0.03 points. See the full VMFXX review, or our head-to-head of SPAXX vs VMFXX.

3. Schwab Prime Advantage Money Fund (SWVXX): best with no minimum

Schwab Asset Management listed a 3.70% 7-day yield for the Investor Shares of SWVXX as of October 6, 2026, both with and without fee waivers. The net expense ratio is 0.34% (0.35% gross), and Schwab lists no minimum initial investment, though its systems require at least $1 per trade. Total net assets were $249.2 billion on October 6, 2026.

SWVXX is a retail prime fund, so it can hold corporate and bank debt, not just government paper. Schwab states that its money funds, other than the government and Treasury funds it names, may impose a fee upon the sale of your shares if the fund’s board decides a fee is in the fund’s best interest. Schwab also says its money funds are available only to Charles Schwab clients. If you already bank or invest at Schwab and don’t want a minimum, it is the strongest yield here. See the full SWVXX review and our Fidelity vs Charles Schwab comparison.

4. Vanguard Cash Reserves Federal Money Market Fund (VMRXX): best Vanguard backup fund

Vanguard listed a 3.80% 7-day SEC yield for VMRXX Admiral Shares as of October 6, 2026, with a 0.10% expense ratio and a $3,000 minimum. Total net assets were $116.1 billion on September 30, 2026.

Like VMFXX, it holds at least 99.5% cash, government securities and government-backed repo. Vanguard adds that the fund invests more than 25% of its assets in securities issued by companies in the financial services industry, including certain government-sponsored enterprises. On October 6 it paid the same yield as VMFXX for one basis point less in fees, so it is a reasonable alternative, not a clear upgrade. See the full VMRXX review.

5. Fidelity Money Market Fund (SPRXX): best Fidelity yield

Fidelity listed a 3.57% 7-day yield for SPRXX as of October 6, 2026, a 0.42% expense ratio and a $0 minimum. Portfolio net assets were $132.7 billion on September 30, 2026, and the fund dates back to January 23, 1989.

SPRXX is a retail prime fund and paid 0.08 points more than Fidelity’s government fund on October 6. The trade-off is in the fine print: Fidelity states that the fund may impose a fee upon the sale of your shares. On $10,000, the yield gap over SPAXX is about $8 a year at current rates (our arithmetic). See the full SPRXX review.

6. Fidelity Government Money Market Fund (SPAXX): best for Fidelity cash with no redemption fee

Fidelity listed a 3.49% 7-day yield for SPAXX as of October 6, 2026, a 0.42% expense ratio and a $0 minimum. It is the largest fund on this list by far, with $464.4 billion in portfolio net assets on September 30, 2026.

Fidelity says the fund normally invests at least 99.5% of total assets in cash, U.S. government securities and fully collateralized repurchase agreements, and that Fidelity’s government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares. SPAXX ranks last on yield because its 0.42% expense ratio is several times Vanguard’s. Fidelity also reported a weighted average maturity of 38 days and a weighted average life of 110 days on October 5, 2026. See the full SPAXX review.

How these funds compare with the industry and with bank accounts

The SEC’s Analytics Office publishes asset-weighted averages for every money market fund that files Form N-MFP. Those industry averages are a useful yardstick, alongside the FDIC’s national average bank rates.

MMF means money market fund. The SEC figures are month-end, asset-weighted 7-day net yields. The FDIC national rate is a deposit-weighted average across banks and credit unions, so the best online savings accounts pay well above it. The point of the table: a money market fund’s yield tracks short-term Treasury and repo rates, while the average bank account does not. If you hold cash in a brokerage account, leaving it in a low-rate sweep instead of a fund can cost real money.

For more industry data, see our money market fund statistics. If you’d rather keep cash in an FDIC-insured bank account, compare our best high-yield savings accounts and best CDs.

Government, Treasury or prime: which type should you pick?

The SEC’s minimums are at least 25% of total assets in daily liquid assets and at least 50% in weekly liquid assets, per its 2023 money market fund reforms. Every category above sat well clear of those floors in August 2026. Prime funds pay a little more for taking a little more credit risk; in August 2026 the average retail prime fund yielded 0.06 points more than the average government fund (our arithmetic on SEC data).

How to choose a money market fund

• Start with where your cash already is. Moving money between brokerages takes time. The best fund at your own broker usually beats a slightly higher yield elsewhere.
• Compare yield after fees. The 7-day yield is already net of expenses, but a lower expense ratio tends to keep a fund near the top over time.
• Check the minimum. Vanguard’s funds on this list require $3,000; Fidelity’s and Schwab’s do not.
• Decide how you feel about prime funds. If you want the cleanest redemption terms, choose a government or Treasury fund.
• Think about state taxes. The IRS says interest on Treasury bills, notes and bonds is exempt from state and local income taxes. A Treasury-heavy fund may help in a high-tax state, but read the fund’s year-end tax information because repo income is generally taxable by states.
• Don’t confuse it with a bank money market account. A money market deposit account is an FDIC-insured bank product; a money market fund is a security. See our money market account category if you want the insured version.

Methodology and limits

We cite only fund company pages and federal sources on this ranking: the SEC, the FDIC, the Federal Reserve, the IRS and SIPC. We do not cite aggregator sites or our own pages as sources. Yields are 7-day figures as of October 6, 2026 and will change. Vanguard labels its figure a 7-day SEC yield; Fidelity and Schwab label theirs a 7-day yield. Past yields don’t guarantee future results. This is not a recommendation to buy any fund.

Sources

• Vanguard Treasury Money Market Fund (VUSXX), Vanguard, checked October 7, 2026
• Vanguard Federal Money Market Fund (VMFXX), Vanguard, checked October 7, 2026
• Vanguard Cash Reserves Federal Money Market Fund Admiral Shares (VMRXX), Vanguard, checked October 7, 2026
• Schwab Prime Advantage Money Fund (SWVXX), Schwab Asset Management, checked October 7, 2026
• Fidelity Money Market Fund (SPRXX), Fidelity Investments, checked October 7, 2026
• Fidelity Government Money Market Fund (SPAXX), Fidelity Investments, checked October 7, 2026
• Money Market Fund Statistics, period ending August 2026, U.S. Securities and Exchange Commission, Division of Investment Management
• Money Market Fund Reforms fact sheet, U.S. Securities and Exchange Commission, July 2023
• National Rates and Rate Caps, September 2026, Federal Deposit Insurance Corporation
• H.15 Selected Interest Rates, Board of Governors of the Federal Reserve System, release dated October 6, 2026
• Publication 550, Investment Income and Expenses, Internal Revenue Service
• What SIPC Protects, Securities Investor Protection Corporation

Prefer an FDIC-insured sweep over a fund? See best cash management accounts, checked on each provider’s own page October 18, 2026.