Rate chasing news

The yields on Fidelity's and Vanguard's tax-exempt money market accounts have recently increased dramatically, especially in the last few days. For example, the yield on the Fidelity tax-exempt municipal money market fund (FTEXX) is 5.88% (!!) compared with 2.70% on Select Money Market (FSLXX). FTEXX has, in principle, a stable $1.00 share price, although this is not guaranteed.

Here is an excellent article on the Vanguard web site, explaining the very high current yields on tax-exempt money market funds: Link. If the Vanguard article is correct, it looks like FTEXX should be safe.

So I shifted our savings that were in FSLXX into FTEXX. I guess I'll see how that works out. I think Fidelity will be very reluctant to let the share price drop below 1.00; I think their reputation practically depends on it.