Every month this fund pays out some interest. My question is, as an example:

Let's say keeping $10000 in there from beginning to end of a month pays out 100 bucks.
Instead of $10000, let's say I only had $1000 in there for most of March, and then hastily added the remaining $9000 in the last week of that month. Do I get the full amount for that month ($100), or does it matter how long I keep X amount in there? This is all assuming the interest rate stays the same.

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Werewolfdad t1_jefv8bp wrote on March 31, 2023 at 6:34 PM

Interest accrues daily and is paid monthly

There’s no playing cute games with it

[deleted] t1_jegfrer wrote on March 31, 2023 at 8:50 PM

Lol i still find it amusing to see people thinking they’re the first ones to think of this

Scbnymph t1_jefxm0c wrote on March 31, 2023 at 6:49 PM

^ This. It accrues daily based on your balance that day. You’re paid at the end of the month.

Mysunsai t1_jefvg91 wrote on March 31, 2023 at 6:35 PM

1 full month. If you leave early or join late, the fund makes a prorated distribution.

It’s not quite the same regulatory framework as ordinary mutual funds, to allow money market funds to keep the price constant they don’t use the normal ex dividend trading schedule.

DeluxeXL t1_jefwgfn wrote on March 31, 2023 at 6:42 PM

It's quite the same for any accrual based mutual fund, like pretty much all of the bond funds.

ETFs on the other hand, even bond ETFs, accumulate in the share price and drop out on ex-dividend date.

PotatoWriter OP t1_jefwill wrote on March 31, 2023 at 6:42 PM

Interesting, didn't know about the prorated part - that's good to know, and makes sense

nkyguy1988 t1_jefvxct wrote on March 31, 2023 at 6:38 PM

To get the full month, it has to be there the full month.