Prime money market funds offer investors a safe, liquid investment option with higher yields than traditional government-backed funds. In 2025, these funds continue to be an excellent choice for short-term investors seeking security and steady returns.
Best Prime Money Market Funds in 2025 – Higher Yields with Low Risk
Investors looking for
higher yields without taking excessive risk often turn to
prime money market funds. Unlike
government money market funds, which invest solely in U.S. Treasury and agency securities,
prime funds include
high-quality corporate debt and
commercial paper, offering
higher returns while maintaining stability.
In 2025, prime money market funds remain
an attractive option for those looking to
maximize short-term gains while keeping their capital secure.
What Are Prime Money Market Funds?
Prime money market funds invest in a mix of
short-term corporate and bank-issued securities, such as:
✅
Commercial Paper (Unsecured short-term debt from corporations)
✅
Certificates of Deposit (CDs) (Issued by financial institutions)
✅
Corporate Bonds (High-credit-rated, short-term debt)
✅
Asset-Backed Securities (Short-term debt backed by loans or receivables)
These funds typically
offer higher yields than government money market funds due to their
diversified asset base.
Top Prime Money Market Funds in 2025
1️⃣ Vanguard Prime Money Market Fund (VMMXX) – Best for Low Fees
✔
Expense Ratio: 0.16%
✔
7-Day Yield: 5.15%
✔
Minimum Investment: $3,000
