T-bills or a money market fund?

Both earn similar returns, but they suit different needs.

• Money market funds: start with a small amount, add any time, withdraw within a few days. Best for your emergency fund and short-term savings.
• T-bills: a set rate for a set period, but your money is locked in and the minimum is higher.
• Bonds: for long-term money or regular income.

Many people use all three: an MMF for emergencies, T-bills for money needed within a year, and bonds for the long term. Compare the after-tax figures, not the headline rates.