money-market fund

But when the Fed drives interest rates back down — that could happen soon if there’s a recession, or many months from now, if inflation is persistent — money-market fund rates will drop, too, and I’ll reduce my holdings in them.

In short, if you are a money-market fund investor, rising interest rates can be delightful.

Keep it in a money-market fund paying 5 percent for a year and you will receive $500.

These include accounts at a major global commercial bank, a credit union, an online high yield F.D.I.C.-insured savings bank and a low-fee money-market fund with a large, reputable asset management company.

Whatever your horizon and risk appetite, it’s particularly important to keep cash in a handy and safe place, like an F.D.I.C.-insured bank account, or a money-market fund that holds high-quality government securities.