MMF Returns: What You Really Earn on Money Market Funds in 2025

When you hear MMF returns, the annual yield generated by money market funds, which invest in low-risk, short-term debt like Treasury bills and commercial paper. Also known as money market fund yields, they’re one of the few places where your cash doesn’t just sit still—it actually earns interest, even in uncertain markets. Unlike savings accounts that pay a fixed rate, MMF returns change daily based on what’s happening in the short-term credit markets. In 2025, with the Federal Reserve holding rates higher for longer, these returns are hitting levels not seen since the early 2010s—some funds are clearing 5% APY. That’s not a typo. For many, it’s the first time in over a decade that keeping money safe actually feels like a smart move.

What makes MMF returns different from a high-yield savings account, a bank deposit account offering higher interest rates than traditional savings, often through online-only institutions? For one, MMFs are mutual funds, not bank accounts, so they’re not FDIC-insured. But they’re still among the safest investments you can hold. They’re required to hold only top-quality, short-duration debt, so your principal doesn’t swing like a stock. Meanwhile, APY, annual percentage yield, which reflects the real rate of return after accounting for compounding on MMFs often beats even the best online savings accounts. Why? Because MMFs bypass bank overhead. They’re not paying for branches, tellers, or ATMs—they’re just buying Treasuries and passing the yield to you. And unlike CDs, which lock your money for months or years, MMFs let you withdraw anytime, no penalties.

So who’s really winning here? Not the folks who leave cash in their checking account earning 0.01%. Not even those stuck with traditional savings accounts paying 1.5%. It’s the people who moved their emergency fund, upcoming down payment, or short-term savings into a money market fund. If you’re saving for a car next year, a wedding in 18 months, or just want to avoid inflation eating your cash, MMF returns are the quiet hero of your portfolio. They’re not glamorous. They don’t promise 10% gains. But they give you safety, liquidity, and real growth—all at once.

Below, you’ll find real breakdowns of which MMFs delivered the highest returns last year, how fees eat into your yield, and why some funds pay more than others—even when they hold the same assets. You’ll also see how MMF returns compare to other short-term options like Treasury bills and bank sweep accounts. No fluff. No jargon. Just what actually matters when you’re trying to make your cash work harder without taking risks you don’t understand.