Current E*TRADE Money Market Rates

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E*TRADE was the first completely online trading platform in market history, and it has continued to innovate through the years. The firm was one of the pioneers of the zero-commission movement that is now standard with online trading platforms. As part of Morgan Stanley, E*TRADE has expanded in terms of the types of products it offers and the number of clients it reaches.

Mutual funds, including money market funds, have long been an important part of the product line that E*TRADE offers. Although E*TRADE doesn’t have its own market funds, investors can purchase more than 100 different funds from outside companies via the E*TRADE platform. 

Many of these are among the most well-known funds and fund families. E*TRADE offers an advanced search tool that makes it easy for investors to find the fund that best matches their needs. You can search by the rate they pay, the minimum amount needed to invest or the expense ratio.

What Are Current E*TRADE Money Market Rates?

E*TRADE doesn’t pay interest on the money market funds it sells. All income, capital gains and management responsibility lie with outside mutual fund vendors.

Here’s a look at the names, expense ratios and interest rates paid by some of the top money market mutual funds currently available through E*TRADE:

The eight money market funds listed above are currently the highest-yielding options available at E*TRADE.

How To Buy E*TRADE Money Market Funds

You can buy E*TRADE money market funds easily online once you open an account. You can follow these steps from there:

1. Add money to your account.
2. Search for the fund you want.
3. Verify that you can meet the minimums to invest.
4. Specify the amount you want to invest.
5. Click on the fund you want and your trade will execute. 

Money Market Fees and Minimums

Each money market fund sets its minimum investment and each has its own fee structure. All the E*TRADE money market funds have no upfront sales commission or “load,” and no transaction fees.

Gross expense ratios range from 0.08% annually on the low end to 1.05% on the high end.

Here are some of the cheapest and most expensive money market funds offered by E*TRADE:

• Gabelli US Treasury Money Market I (GABXX), 0.08%
• Vanguard Treasury Money Market Investor (VUSXX), 0.09%
• Vanguard Cash Reserve Federal Money Market Admiral (VMRXX), 0.10%
• Vanguard Federal Money Market Investor (VMFXX), 0.11%

• Rydex US Government Money Market (RYFXX), 1.05%
• Federated Hermes NY Municipal Cash Trust (FNTXX), 1.04%
• Federated Hermes Government Reserves A (GRAXX), 0.98%
• ProFunds Government Money Market ProFund (MPIXX), 0.98%

Twenty-six of the E*TRADE money market mutual funds have a $0 or $1 minimum investment. Four have a $100 minimum, and six have a minimum of $250.

From there, minimums jump up to $1,000 and then run up to seven digits. Eight funds, for example, have a $1 million minimum, while one fund, Federated Hermes Government Obligations Premier (GOFXX), has a whopping $5 million minimum, the highest E*TRADE offers.

E*TRADE Money Market Fund Competitors

Fidelity, Charles Schwab and Vanguard are three of the main E*TRADE competitors. However, they don’t compete directly, as E*TRADE doesn’t offer proprietary money market funds. You can buy each of these funds on the E*TRADE website as well, except for the Schwab Value Advantage Money Fund.

With that in mind, here are some of the top money market funds managed by some of E*TRADE’s top competitors:

Does E*TRADE Have a High-Yield Savings Account?

E*TRADE does offer a high-yield savings account, branded after its parent company Morgan Stanley. Specifically, the E*TRADE high-yield savings account is dubbed the Premium Savings Account from Morgan Stanley Private Bank.

The account has no minimum deposit, is FDIC-insured up to $500,000 and currently pays a APY.

What Is the Difference Between a High-Yield Savings Account and a Money Market Fund?

High-yield savings accounts and money market funds are both used as places to park cash. They typically earn an above-market interest rate that exceeds what you’d earn in a checking account or even a traditional savings account. However, the structure of the funds is inherently different.

A high-yield savings account is a bank deposit account. It usually comes with the traditional $250,000 FDIC insurance. Oftentimes, banks supplement this federal insurance with their own insurance or by spreading deposits between partner banks, boosting the amount of coverage.

The “high-yield” designation comes from the fact that these types of accounts pay more interest than traditional savings accounts, sometimes by a factor of 10. According to the FDIC, for example, the average bank savings account yield as of Jan. 21, 2025, was 0.41%. However many high-yield savings accounts are paying over 4.50%.

A money market fund, on the other hand, is not a bank deposit. Rather, it’s an investment, the same as any other type of mutual fund. This means that money market funds don’t carry the FDIC insurance that extends to traditional banking products.

However, this doesn’t mean that they are risky or unprotected. As they are investments, they are instead insured by the SIPC, for up to $500,000. Bear in mind that SIPC insurance doesn’t protect your money market fund from any investment losses. Rather, it insures against the failure of the investment firm.

But money market funds are inherently among the safest investments available, as they traditionally invest in ultra high-quality, ultra short-term securities.

Daria Uhlig contributed to the reporting for this article.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

Data is accurate as of Feb. 6, 2025, and is subject to change.

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