Best Money Market Funds 2026 — Ranked by Yield, Expense & Tax
Quick take: The top money market funds in 2026 yield 4.00-4.35% on the 7-day SEC measure. The highest after-tax yield for a Californian or New Yorker is usually a Treasury-only fund (state-tax exempt). For money you won't need for 3+ years, the right comparison is not "which MMF" but "MMF vs locked rate on a MYGA" — and the MYGA usually wins on math.
Best money market funds 2026 — ranked
| Rank | Fund | 7-Day Yield | Expense | Category | Why it's on the list |
|---|---|---|---|---|---|
| 1. | Vanguard Federal Money Market Fund (VMFXX) | 4.20% | 0.11% | Government | Cheapest expense ratio in the category; default Vanguard brokerage sweep. |
| 2. | Vanguard Treasury Money Market Fund (VUSXX) | 4.10% | 0.09% | Treasury | Best after-tax yield for high-state-tax residents (CA/NY/NJ/OR/MA). |
| 3. | Fidelity Treasury Only MMF (FDLXX) | 4.05% | 0.42% | Treasury | Best Fidelity choice for high-state-tax-state residents; cleanest exemption. |
| 4. | Fidelity Government MMF (SPAXX) | 4.15% | 0.42% | Government | Default Fidelity brokerage sweep — convenience choice. |
| 5. | Fidelity Money Market Premium (FZDXX) | 4.35% | 0.32% | Prime | Highest headline yield at Fidelity for $100K+ accounts — prime exposure. |
| 6. | Schwab U.S. Treasury MMF (SNSXX) | 4.02% | 0.34% | Treasury | Best Schwab choice for high-state-tax residents; not the default sweep. |
| 7. | Schwab Government MMF (SNVXX) | 4.12% | 0.34% | Government | Best Schwab choice for no-income-tax-state residents. |
| 8. | BlackRock Liquidity TempFund (TMPXX) | 4.22% | 0.21% | Prime | Institutional-grade prime fund with reasonable expense ratio. |
| 9. | JPMorgan Liquid Assets (JLAXX) | 4.18% | 0.50% | Prime | JPMorgan brand and credit research — expense ratio on the high side. |
| 10. | Federated Hermes Prime Cash Obligations (PCOXX) | 4.25% | 0.20% | Prime | 50-year MMF veteran; reasonable expense for prime exposure. |
Methodology — how we ranked them
Money market funds are commodity-like products inside Rule 2a-7. The ranking weighting:
- 40% — expense ratio. Every basis point of expense is one less basis point of net yield. In a 4% yield environment, the difference between a 0.10% expense and a 0.50% expense is 10% of your return.
- 25% — after-tax yield for a typical Californian or New Yorker. Treasury-only funds with strong state-tax exemption can clear 4% on an after-tax basis even when headline yield trails by 10-20 bps.
- 20% — collateral quality. Government and Treasury funds rank above prime funds. Prime funds can impose liquidity fees and redemption gates in stress events. Government and Treasury funds essentially cannot.
- 10% — accessibility. Minimums, share classes, brokerage availability.
- 5% — fund-family financial strength and operational track record.
We do not weight headline 7-day yield highly. Yield differences within the top tier are 10-30 bps; expense ratio differences explain almost all of that spread. A fund that out-yields the field by 20 bps with a 50 bps expense ratio is being out-managed by a competitor with a 15 bps expense ratio.
The single most important question: government, Treasury, or prime?
Inside the major brokerages, you have three flavors of MMF:
- Government MMF (VMFXX, SPAXX, SNVXX): holds U.S. Treasuries, agency paper, and repo collateralized by Treasuries. Government-level safety. Partial state-tax exemption.
- Treasury MMF (VUSXX, FDLXX, SNSXX): holds direct U.S. Treasury obligations only. Cleanest collateral. Substantial state-tax exemption.
- Prime MMF (FZDXX, JLAXX, TMPXX, PCOXX): holds commercial paper, bank CDs, and other short corporate paper alongside government collateral. Slightly higher yield. Subject to liquidity fees and redemption gates in stress.
For retirement-age buyers focused on capital preservation, government or Treasury is the right answer 90% of the time. The 10-20 bps of prime-fund yield pickup isn't worth the gate-and-fee risk that materialized in 2008 (Reserve Primary Fund) and again in March 2020 (when prime funds saw heavy redemptions and the Fed had to backstop the category with the MMLF facility).
The bigger question: should you be in a MMF at all?
Money market funds are designed for cash you might need within weeks or months. They are not designed for 3-5 year money. Yet a meaningful percentage of retirees park six figures in MMFs for years on end — ignoring the fact that they're sitting in a vehicle whose yield resets in lockstep with the Fed.
For money you reliably won't touch for 3-5 years, a top A-rated MYGA pays 5.40-5.60% locked for the full term. That's 100-150 bps over the best MMF, with tax deferral on top. See the full MMF vs MYGA math →
More Money Market Fund research
- Best Money Market Funds 2026 (ranked)
- MMF vs MYGA — when each wins
- MMF vs HYSA — yield spread and risk
- MMF vs CD — liquidity vs lock
- Breaking the buck — 1994 & 2008 cases
- How MMF yields track the Fed funds rate
- High-Yield Savings reviews
- Best MYGA rates 2026
FAQ
Q: Are these rankings paid placements?
A: No. Hans does not sell money market funds and receives no compensation from any fund company. Rankings are based on publicly available prospectuses, expense ratios, SEC yield disclosures, and SEC Rule 2a-7 filings.
Q: How often does this list change?
A: Yields move daily with the Fed funds rate. Rankings (which weight expense ratio heavily) change much less often. We refresh quarterly or after major Fed moves.
Q: What about institutional / sweep-only funds?
A: This list covers retail-accessible funds. Institutional-only share classes (with lower expense ratios) are not relevant to most readers.
Q: Why isn't [some fund] on the list?
A: We focus on the major-brand funds that 90% of retail brokerage clients can access. Smaller fund-family MMFs are usually similar yield, similar expense, no compelling differentiator.
About Hans Goldstein: Independent retirement income specialist. CA Life License #4163961. NPN #20602398. Reviews 30+ carriers and the full menu of cash alternatives. Phone: 213-414-2808. Email: hans@goldsteinco.net.
Hans is independently licensed as an insurance producer; he does not sell money market funds or other securities. These reviews are based on publicly available fund prospectuses, fact sheets, SEC filings, and SEC-yield reporting requirements.
📩 Comparing MMF yield to a locked rate? Get a 5-min independent read.
Talk to a licensed independent expert. Hans.
Money market funds are great for short-term cash. For money you don't need for 3+ years, a multi-year guaranteed annuity (MYGA) typically pays 100-150 bps more and defers tax. Get an independent side-by-side before you let cash drift in a MMF for 5 years.
Drop your info — within 24 hours you'll get a written comparison of your current MMF yield vs top 3 A-rated MYGAs for your tax bracket, plus a no-pressure 15-minute call if you want one.
📞 Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
By submitting, you agree to receive calls and texts from Hans Goldstein. Msg/data rates apply. Reply STOP to opt out. Privacy Policy.
Disclosure
This review reflects publicly available fund prospectuses, fact sheets, and approximate 7-day SEC yields as of the date stated above. Money market fund yields change daily and reset roughly in line with the federal funds rate; always confirm current yield, expense ratio, holdings, and weighted average maturity against the most recent fund disclosure document before committing capital. Money market funds are not FDIC-insured. Government and Treasury money market funds historically maintain a stable $1.00 NAV but are not guaranteed to do so — see "breaking the buck" history. Prime money market funds may impose liquidity fees or redemption gates during market stress. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) and does not sell securities or money market funds; comparisons to multi-year guaranteed annuities (MYGAs) are provided for informational context only. No compensation has been received from any fund company in connection with the publication of this review. Always read the actual fund prospectus and consult a licensed advisor before investing. Past yield does not predict future yield. State income tax treatment of U.S. Treasury obligations varies and is subject to change. Tax discussion reflects federal and California law as of 2026 and is subject to change.