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Money market funds are considered low-risk investments. A money market fund can be a vehicle to help save for short-term goals that you know are coming up, such as a new car or new roof on the house.

Risk: Money market accounts are protected by the FDIC, with guarantees up to $250,000 per depositor per bank. So money market accounts present no risk to your principal.

Risk: Money market accounts are protected by the FDIC, with guarantees up to $250,000 per depositor per bank. So money market accounts present no risk to your principal.