Banks, and credit unions and mutual fund companies offer money market accounts. These accounts consist of very short-term debt securities. The investments are highly liquid and considered safe because of the short maturities of the underlining obligations. Last year there was some concern when some money markets held debt from companies in question such as Leman brothers. People and institutions use the accounts to park funds that they intend to use in the near future.
You will note that the BoA expense ratio is 3 times higher than what others charge. No wonder B of A Investment services money market is paying 0% when they pay out of line fees to themselves and their vendors.
It just goes to show that you need to look out for your self or have help watching out for you by some one who is not selling you a product!
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