Now I stated this in my previous post but I just want to make sure all of you understand this When under SIPC at brokerage accounts it says you are protected for $250,000 on cash per category account Cash is different than money you have invested in a Money Market Fund I know it’s confusing but you need to understand the difference Cash is just cash sitting in an account not making interest in most cases just cash Cash you have invested in a Money Market Fund that makes a nice interest rate is not considered Cash for you own shares valued at $1 each in that fund NOW READ THIS CAREFULLY Money market mutual fund shares held in a your account at a brokerage firm qualify as “securities” under the Securities Investor Protection Act (SIPA) and therefore are subject to the $500,000 limit of protection, not the $250,000 limit applicable to cash. It is important to remember that, although many investors treat money market funds like cash, they are securities and, as such, may lose value. In a liquidation proceeding under SIPA, subject to the limits of SIPC protection, SIPC will return money market fund shares to a customer, but will not protect the customer against any decline in the value of those shares

Posted by Suze at 2023-03-20 13:04:21 UTC