Fidelity and Vanguard Join Treasury’s Money Market Guaranty Plan

081 - VanguardToday’s WSJ notes that Fidelity, Vanguard, and T. Rowe Price Group have signed up for the Treasury Dept’s guaranty fund for money market funds that were held prior to September 19th. Now all the major mutual fund families with large money market funds appear to be participating in the fund (Charles Schwab is also on the list). Investors wondering about their accounts should check their fund’s web site; participating funds seem to be announcing their participation fairly prominently. You may also want to confirm that the specific fund that you own is covered; for example, Schwab’s U.S. Dollar Liquid Assets Fund is not included because it’s not a U.S.-based money fund. The guaranty fund will be in effect for at least three months and the Treasury dept. has the option to extend the coverage for a year. I decided to add this post because the blog is still getting a lot of traffic from people with questions about whether their mutual funds or money market funds are insured, and this information might be helpful to them. People with questions might also want to try the Treasury’s FAQ page on the money-market guaranty fund. See a related post here: How Can I Tell If My Money Market Fund Is Safe?

Postscript added 3-3-09: The current termination date for the money market fund guaranty program is April 30, 2009. The Secretary of the Treasury may extend the program to September 18, 2009.

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Thomas Fisher, CFP®

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