First, bank deposit interest income to pay 20% tax on interest, but money market funds held by the income it receives can enjoy tax exemption;
Second, although regular savings banks have a higher rate of return, but the lack of liquidity, demand deposits, even though it can access at any time, but after-tax interest rates low, while money market funds more liquid, while income is higher.
Again, there is a fixed interest rate bank savings, while money market funds with daily changes in market interest rates, the daily earnings are different; Bank Savings is based on compounded annual basis, while money market funds is compounded daily.
Second, although regular savings banks have a higher rate of return, but the lack of liquidity, demand deposits, even though it can access at any time, but after-tax interest rates low, while money market funds more liquid, while income is higher.
Again, there is a fixed interest rate bank savings, while money market funds with daily changes in market interest rates, the daily earnings are different; Bank Savings is based on compounded annual basis, while money market funds is compounded daily.
