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Welcome USAA members.
Take the next step toward your tomorrow with Schwab.
Schwab Money Funds
- A convenient way to access potentially higher yields on cash
- Access to a range of taxable and tax-exempt money funds1
- No transaction fees to buy or sell2
- Minimum investment as low as $0*
What is a money market fund?
A Money Market fund is a mutual fund that invests in short-term, higher quality securities. Designed to provide high liquidity with lower risk, stability of capital and typically higher yields than some other cash products.
Prime Money Funds3 (Taxable)
Prime Money Funds3(Taxable)
These funds invest in high-quality, short-term money market securities issued by U.S. and foreign entities, including corporations, financial institutions, and the U.S. government.
Prime Money Funds³ (Taxable)
- 7-day yield (with waivers) as of 12:00 AM EST 12/20/20234
- Minimum Initial Investment
- Eligible Investors3
- Next Step
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Schwab Value Advantage Money Fund®– Investor Shares (SWVXX)
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7-day yield (with waivers) as of 12:00 AM EST 12/20/20234
5.27%
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Minimum Initial Investment
$0*
>
Eligible Investors3
Retail
>
Next Step
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Schwab Value Advantage Money Fund® –Ultra Shares (SNAXX)
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7-day yield (with waivers) as of 12:00 AM EST 12/20/20234
5.42%
>
Government and Treasury Money Funds (Taxable)
Government and Treasury Money Funds (Taxable)
These funds invest in short-term U.S. government debtsecurities with holdings in U.S. Treasury obligations orrepurchase agreements.
Government and Treasury Money Funds (Taxable)
- 7-day yield (with waivers) as of 12:00 AM EST 12/20/20234
- Minimum Initial Investment
- Eligible Investors3
- Next Step
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Schwab Government Money Fund – Investor Shares (SNVXX)
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7-day yield (with waivers) as of 12:00 AM EST 12/20/20234
5.08%
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Minimum Initial Investment
$0*
>
Eligible Investors3
Retail/Institutional
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Next Step
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Schwab Government Money Fund – Ultra Shares (SGUXX)
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7-day yield (with waivers) as of 12:00 AM EST 12/20/20234
5.23%
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Minimum Initial Investment
$1,000,000
>
Eligible Investors3
Retail/Institutional
>
Next Step
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See AlsoWhat is a money market account? | Consumer Financial Protection BureauMoney market or CD: Which is right for you? | FidelityDo You Get Taxed on Your Savings Account? - ExperianWhat are money market funds? - Fidelity-
Schwab Treasury Obligations Money Fund – Investor Shares (SNOXX)
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7-day yield (with waivers) as of 12:00 AM EST 12/20/20234
5.07%
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Minimum Initial Investment
$0*
>
Eligible Investors3
Retail/Institutional
>
Next Step
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Schwab Treasury Obligations Money Fund – Ultra Shares (SCOXX)
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7-day yield (with waivers) as of 12:00 AM EST 12/20/20234
5.22%
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Minimum Initial Investment
$1,000,000
>
Eligible Investors3
Retail/Institutional
>
Next Step
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Schwab U.S. Treasury Money Fund – Investor Shares (SNSXX)
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7-day yield (with waivers) as of 12:00 AM EST 12/20/20234
5.09%
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Minimum Initial Investment
$0*
>
Eligible Investors3
Retail/Institutional
>
Next Step
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Schwab U.S. Treasury Money Fund – Ultra Shares (SUTXX)
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7-day yield (with waivers) as of 12:00 AM EST 12/20/20234
5.24%
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Municipal Money Funds³ (Tax-Exempt)
Municipal Money Funds3(Tax-Exempt)
These funds invest in short-term municipal money marketsecurities issued by states, local governments, and othermunicipal agencies.
Municipal Money Funds³ (Tax-Exempt)
- 7-day yield (with waivers) as of
12:00 AM EST 12/20/20234, 5 - Minimum Initial Investment
- Eligible Investors3
- Next Step
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Schwab Municipal Money Fund - Investor Shares (SWTXX)
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7-day yield (with waivers) as of
12:00 AM EST 12/20/20234, 53.40%
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Minimum Initial Investment
$0*
>
Eligible Investors3
Retail
>
Next Step
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Schwab Municipal Money Fund - Ultra Shares (SWOXX)
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7-day yield (with waivers) as of
12:00 AM EST 12/20/20234, 53.55%
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Minimum Initial Investment
$1,000,000
>
Eligible Investors3
Retail
>
Next Step
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Schwab California Municipal Money Fund – Investor Shares (SWKXX)
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7-day yield (with waivers) as of
12:00 AM EST 12/20/20234, 52.97%
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Minimum Initial Investment
$0*
>
Eligible Investors3
Retail
>
Next Step
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Schwab California Municipal Money Fund – Ultra Shares (SCAXX)
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7-day yield (with waivers) as of
12:00 AM EST 12/20/20234, 53.12%
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Minimum Initial Investment
$1,000,000
>
Eligible Investors3
Retail
>
Next Step
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Schwab New York Municipal Money Fund – Investor Shares (SWYXX)
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7-day yield (with waivers) as of
12:00 AM EST 12/20/20234, 53.32%
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Minimum Initial Investment
$0*
>
Eligible Investors3
Retail
>
Next Step
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Schwab New York Municipal Money Fund – Ultra Shares (SNYXX)
>
7-day yield (with waivers) as of
12:00 AM EST 12/20/20234, 53.47%
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Minimum Initial Investment
$1,000,000
>
Eligible Investors3
Retail
>
Next Step
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Schwab AMT Tax-Free Money Fund – Investor Shares (SWWXX)
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7-day yield (with waivers) as of
12:00 AM EST 12/20/20234, 53.42%
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Minimum Initial Investment
$0*
>
Eligible Investors3
Retail
>
Next Step
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Schwab AMT Tax-Free Money Fund – Ultra Shares (SCTXX)
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7-day yield (with waivers) as of
12:00 AM EST 12/20/20234, 53.57%
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Variable Share Price Money Funds (Taxable)
Variable Share Price Money Funds (Taxable)
Designed primarily for institutional investors. This fund invests in taxable short-term obligations issued by corporations and banks, as well as repurchase agreements and asset-backed commercial paper.
Variable Share Price Money Funds (Taxable)
- 7-day yield (with waivers) as of 12:00 AM EST 12/20/20234
- Minimum Initial Investment
- Eligible Investors3
- Next Step
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Schwab Variable Share Price Money Fund™– Ultra Shares (SVUXX)
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7-day yield (with waivers) as of 12:00 AM EST 12/20/20234
5.42%
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The Variable Share Price Money Fund is a prime taxable money fund intended for institutional accounts.
Want to learn more?
Distributions
Schwab Money Funds pay dividends on the 15th of each month (or on the next business day, if the 15th is not a business day), except that in December dividends are paid on the last business day of the month.
Schwab Funds® Monthly Distribution Schedule
Explore the details of Schwab Money Funds and Schwab Money Funds Commentary
Schwab Sweep Money Funds
Schwab has eliminated sweep money market funds as a cash feature for most new and existing accounts. Limited accounts and account types may be eligible to have a money market fund as the designated cash feature. More complete information about all of Schwab’s available cash features can be found in theCash Features Disclosure Statement.
- Who can buy what funds?
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- Retail Investors can invest in retail money market funds, which are defined as funds with policies and procedures that limit beneficial ownership to those investors deemed as "natural persons."
- Institutional Investors are eligible to invest in institutional money market funds with a variable net asset value (VNAV). Retail Investors may also choose to invest in these funds.
- Both Retail and Institutional Investors are eligible to invest in government money market funds.
- What are the benefits of Schwab Money Funds?
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- Designed to provide a convenient way to access potentially higher yields on cash
- Most have no investment minimums
- No transaction fees
- Solutions for both retail and institutional account types
- Extensive credit research and professional money management
- How do I buy shares in a money market fund?
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Money market funds can be bought and sold in most brokerage and retirement accounts and are treated similarly to how other mutual funds are traded.
- What types of money market funds are available?
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Prime Money Market Funds primarily invest in taxable short-term obligations issued by corporations and banks, as well as repurchase agreements and asset-backed commercial paper. Prime MMFs are considered retail money funds and are only available to natural persons.
Government and Treasury Money Market Funds primarily invest in short-term U.S. government debt securities. Treasury money market funds typically limit their holdings to only U.S. Treasury obligations or repurchase agreements collateralized by U.S. Treasury securities. Government and Treasury MMFs are available to all investors.
Municipal Money Market Fundsprimarily invest in short-term municipal money market securities issued by states, local governments, and other municipal agencies. Municipal MMFs pay interest that is generally exempt from federal income tax. Municipal MMFs are considered retail money funds and are only available to natural persons.
Variable Share Price Prime Money Market Funds are designed for institutional investors but are available to all investors. These funds invest in taxable short-term obligations issued by corporations and banks, as well as repurchase agreements and asset-backed commercial paper. Daily share price (net asset value, NAV) will fluctuate.
- What are the main differences between prime money funds, government funds, and municipal funds?
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The main differences between the types of money market funds are what each fund is allowed to invest in (i.e., the investible universe), and the corresponding regulatory rules applicable to each sector, which can affect the yield the portfolio generates. A prime money fund invests primarily in taxable short-term obligations issued by corporations and banks, as well as repurchase agreements and asset-backed commercial paper. Government and Treasury funds invest primarily in short-term U.S. government debt securities. Treasury money market funds typically limit their holdings to only U.S. Treasury obligations or repurchase agreements collateralized by U.S. Treasury securities. Municipal money market funds invest primarily in short-term, municipal money market securities issued by states, local governments, and other municipal agencies. They pay interest that is generally exempt from federal income tax. Go here for a list of current money market fund options and yields.
- Are money market funds covered by SIPC?
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Accounts of Charles Schwab & Co., Inc. are insured by SIPC for securities and cash in the event of broker-dealer failure. The Schwab Money Funds are protected as securities by SIPC.Below is a link to information that can be shared with the client atschwab.com.
Additional information on SIPC:SIPC® Account Protection: Charles Schwab: Asset Protection
- What are the yields on Schwab Money Funds?
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Schwab Money Funds are quoted with a 7-day yield. A money fund's 7-day yield fluctuates based on several factors, including the current interest rate environment. Go here for a list of current money market fund options and 7-day yields.
- How do yields compare between different Schwab Money Funds?
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Money market fund yields can be affected by multiple variables that may be sector-specific, including supply/demand dynamics, regulatory requirements, and eligibility rules. For more information, go here to see Schwab's current money market fund options and yields.
- Do Schwab Money Fund yields change?
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Yes. Yields often fluctuate based on several factors, including the current interest rate environment and the fund's underlying holdings. Go here for a list of current money market fund options and yields.
- What is the 7-day yield?
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The 7-Day Yield represents the annualized fund yield based on the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of all applicable waivers. Absent such waivers, the fund's yield would have been lower.
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As a financial expert with a deep understanding of money market funds, I'll delve into the concepts mentioned in the provided article to help you comprehend the nuances of Schwab Money Funds. My expertise stems from a comprehensive knowledge of financial instruments and investment strategies.
Money Market Funds:
Definition:
A Money Market Fund is a type of mutual fund that invests in short-term, high-quality securities. These funds are designed to offer high liquidity, lower risk, capital stability, and typically higher yields compared to some other cash products.
Types of Money Market Funds:
1. Prime Money Funds (Taxable):
- Invest in short-term money market securities issued by U.S. and foreign entities.
- Includes corporations, financial institutions, and the U.S. government.
- Notable examples include Schwab Value Advantage Money Fund®.
2. Government and Treasury Money Funds (Taxable):
- Invest in short-term U.S. government debt securities.
- May include U.S. Treasury obligations or repurchase agreements.
- Examples include Schwab Government Money Fund and Schwab Treasury Obligations Money Fund.
3. Municipal Money Funds (Tax-Exempt):
- Invest in short-term municipal money market securities.
- Issued by states, local governments, and other municipal agencies.
- Examples include Schwab Municipal Money Fund and Schwab California Municipal Money Fund.
4. Variable Share Price Money Funds (Taxable):
- Primarily designed for institutional investors.
- Invest in taxable short-term obligations issued by corporations, banks, and asset-backed commercial paper.
- Examples include Schwab Variable Share Price Money Fund™.
Key Features and Information:
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7-Day Yield: Represents the annualized fund yield based on the average income paid out over the previous seven days, factoring in applicable waivers.
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Minimum Initial Investment: Varies among funds, some with no minimum requirement (e.g., Schwab Value Advantage Money Fund®– Investor Shares), while others may require a substantial initial investment.
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Eligible Investors: Funds cater to both retail and institutional investors. Retail investors are typically "natural persons," while institutional investors may include a broader range.
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Distributions: Dividends are paid on the 15th of each month or the last business day in December.
Schwab Money Fund Benefits:
- Convenient Access: Designed to provide a convenient way to access potentially higher yields on cash.
- No Investment Minimums: Most funds have no investment minimums.
- No Transaction Fees: Money funds generally have no transaction fees.
- Retail and Institutional Solutions: Available for both retail and institutional account types.
- Credit Research: Backed by extensive credit research and professional money management.
Purchasing Money Market Fund Shares:
- Money market funds can be bought and sold in most brokerage and retirement accounts, similar to other mutual funds.
Understanding the Differences:
- Prime Money Funds: Invest in taxable short-term obligations issued by corporations and banks.
- Government and Treasury Funds: Primarily invest in short-term U.S. government debt securities.
- Municipal Funds: Invest in short-term municipal money market securities issued by states and local governments.
Additional Information:
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SIPC Coverage: Schwab Money Funds are protected by the Securities Investor Protection Corporation (SIPC) for securities and cash.
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Yield Fluctuations: Yields fluctuate based on factors like the current interest rate environment and the fund's underlying holdings.
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7-Day Yield: Reflects the annualized fund yield based on the average income paid out over the previous seven days, considering applicable waivers.
In conclusion, Schwab Money Funds offer a diverse range of options catering to different investor needs, providing liquidity, and potentially higher yields with various risk profiles. Understanding the distinctions between fund types is crucial for making informed investment decisions.