Money market funds: your secret weapon for smart saving?

Hey Moniflower! Do you sometimes feel like your savings account is more of a slacker than a hard worker? Well, you're not alone. In today's financial landscape, we're all looking for ways to make our money work smarter. That's where money market funds come in. Let's find out together how these funds can give your savings the boost they need.  

What are money market funds actually all about?

First things first - Let's take the mystery out of these mysterious money market funds (MMFs for short). MMFs are a type of mutual fund that invests in short-term, low-risk securities. Think of them as the more ambitious cousin of your savings account. They invest in things like government bonds and high-quality corporate debt and aim to give you a better return than traditional savings options.

The aim? To keep the value stable and at the same time achieve a return that is roughly in line with the interest rates on fixed-term deposits. It's like giving your money a meaningful purpose while keeping it available at all times.

How does the magic of money market funds work?

Okay, let's break it down:

• You invest your money in the fund.
• The fund managers pool your money with that of other investors.
• You invest this capital in a broadly diversified portfolio of short-term, high-quality debt instruments.
• If these securities generate interest, the fund shares the income with you as dividends.

The best part? In accumulating MMFs, your investment will constantly earn interest on interest, giving you stable growth with a high level of security.

What different types of money market funds are there?

• Sovereign wealth funds: These invest mainly in government bonds and offer a classic, low-risk option.
• Prime funds: These can invest in both government and corporate bonds and potentially offer a slightly higher return with a slightly higher risk.
• Tax-exempt accumulation funds: For our Luxembourg friends, these funds focus on securities that offer tax-free capital gains after a 6-month holding period.

Each type has its own risk and return profile, so you can choose the one that best suits your financial goals.

Why should you consider money market funds?

• Liquidity: Unlike some other investments, you can usually access your money at any time.
• Potential for better returns: They aim to offer better returns than traditional savings accounts.
• Diversification: Your investment is spread across different securities instead of just being held in one place.
• Lower risk: Although they are not risk-free, these funds are designed to preserve capital.

Introducing: Money market funds at Moniflo

We are pleased to be able to bring these money market funds directly to your smartphone via the Moniflo app. No complicated procedures or visits to the bank are required. Just a few clicks and you're ready to invest.

For our Luxembourg investors:

• Access to tax-free returns (after a 6-month holding period)
• Low-risk opportunities for capital preservation
• Flexibility to add or withdraw funds at any time

For our German friends:

• Competitive returns that aim to outperform traditional savings accounts
• A clear conscience thanks to stable, short-term investments
• Simple management via the user-friendly Moniflo app

Are money market funds right for you?

Look, we're not here to tell you what to do with your hard-earned money. That's your decision. But if you're tired of your money taking a vacation in a low-interest savings account, money market funds might be worth a look.  

Ready to make your money work for you?

Money market funds are an alternative to low returns or non-interest bearing savings accounts. They are designed to offer a smart and stable way to potentially get more out of your savings.

Moniflo makes getting started with money market funds simple and user-friendly. Our app gives you easy access to these funds and clear information to help you make informed decisions.

Are you curious? Do you have any questions? We're here for you! Get in touch via the Moniflo app or contact our support team. We'll be happy to help you explore the world of money market funds.

Ready to put your savings to work? Download the Moniflo app and discover money market funds today!

Remember: Although we try to make finances accessible, tax implications may vary. The tax information mentioned here may change depending on your individual situation. For personal advice, it is always advisable to consult a tax advisor.