Am I better off with a money market deposit account through a bank, a cash management account or a money market mutual fund?

If you want absolute safety, a money market deposit account is probably your best investment. Although cash management accounts and money market mutual funds are not insured by the FDIC, they offer extremely high levels of safety. In fact, they often put much of their money in investments guaranteed by the government. Therefore, instead of making your decision based on safety, you should look at which account or fund meets your other needs.

If you’re just getting started, you might choose the account or fund with the lowest minimum balance to qualify for the highest interest rate. Some financial institutions are willing to waive the minimum balance if you agree to invest a small amount automatically each month.