Ask the Experts: U.S. Guarantee for Money Market Funds Ending Soon

Q. I invested in a money market fund. But given the ups and downs of the economy, I’m worried that the value of money market shares will drop below $1. Does the government guarantee these funds?

A. If your fund is participating in the Treasury Department’s Temporary Guarantee Program for Money Market Funds, and you had funds in your account as of Sept. 19, 2008, then your investment is protected—but only temporarily. The program, which guarantees investors will receive $1 for each money market fund share held, ends on Sept. 18. Money market funds are generally considered one of the safest places to invest money. Contact your money market fund directly to find out whether it is participating in the program.