Money market funds

What are money market funds? 

Money market funds (also called money market mutual funds) are a type of mutual fund that invests in highly liquid, near-term vehicles. These include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity (like U.S. Treasuries). Money market funds work to offer investors high liquidity with a very low level of risk.

What type of money market funds can I invest in? 

You can currently invest in TIMXX, a money market fund offered by the Royal Bank of Canada (RBC). Your investments in money market funds will be shown in your Cash Account, and will change your Cash Account available balance. 

How do I add or remove money market funds into my Cash Account? 

To add or remove money market funds, go to your Cash Account and select Manage. Then go to the money market information card and select Continue. 

Once you’ve invested in money market funds, you’ll also be able to update your allocation from the money market section on your Cash Account page. 

Can I spend or transfer from money market funds? 

No, you won’t be able to spend directly from money market funds, use your Wealthfront debit card with them, or transfer them to an external or Wealthfront investment account. 

To access your invested cash, reduce your allocation — this will move money back to your cash balance (ie. cash in categories and your uncategorized cash). Moving these funds may take 1-2 business days to complete. 

Will money market funds display as a part of my available balance? 

No, money market funds are not part of your available balance.

Here’s an example of how your Cash Account balances might look:

If all my cash is held in money market funds, will money automatically be deposited there? 

No, money will still be deposited to the uncategorized section of your Cash Account. You must allocate any cash to money market funds yourself. 

Are money market funds FDIC insured? 

No, money market funds aren’t FDIC insured. They’re covered by the Securities Investor Protection Corporation (SIPC) up to applicable program limits. Learn more about SIPC.

How will money market funds appear on my Wealthfront Cash Account statements? 

If you hold any money market funds, there will be a money market fund section on your statement. 

How long will it take for money market funds in my Cash Account to be invested?

Once you initiate a transfer, it typically takes 1-2 business days for funds to be invested.