One in Four Survey Respondents Stashing Cash in Money Market Accounts/Funds

This month’s Asset Allocation Survey special question asked AAII members what type of account they prefer to use for their cash. More than four out of 10 respondents (43%) said money market accounts or money market funds. Checking and savings accounts (both at banks and at credit unions) were the next most popular type of account, more than 20% of respondents. Certificates of deposit (CDs) and brokerage accounts were each named by just under 13% of respondents. Some members listed more than one type of account. Common themes given as to why included ease of accessing funds, interest rates and—in the case of bank and credit union products and accounts—safety.

Here is a sampling of the responses:

  • “Brokerage account. Cash is available for stocks when the market improves.”
  • “CDs, because you can get 1.5% interest or better by looking around.”
  • “In a brokerage account for quick deployment if market conditions warrant.”
  • “Insured bank deposits because of safety, liquidity and convenience.”
  • “Money market accounts. It’s all about how handy it is.”
  • “Online savings account. You can get a 1% yield, quick access to your money and it’s FDIC insured.”

Want to weigh in? Take the survey yourself and see results online at

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