Bloomberg We could do a lot of quibbling about these figures. You would also have to pay a commission if you made the purchase through a broker. In a market where the average stock yields only 2.2 percent, these kind of differences become very important. The yield advantage you can achieve depends on what you buy and how you buy. For CDs, it also depends on where you buy.
Some areas pay higher yields on CDs than others.
According to recent BanxQuote figures, for instance, CD buyers in Illinois and California earn much higher yields than CD buyers in Texas or Pennsylvania. According to Mutual Fund Expert, a fund software and database product from Steele Systems in Los Angeles, there are now 434 bank sponsored money market mutual funds. Attacked violently by bankers when they were created in the early seventies, money market mutual funds are now a vehicle for bank expansion into mutual funds. Many banks sponsor multiple funds, offering those investing in commercial paper, government securities, or even tax-free securities. The common denominator of all these funds is that they invest short term.