[eastbay]

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Tax free money funds are a good deal now for residents of NY, California, and especially NYC, provided that you are in a high marginal bracket and are AMT-exempt. We're currently getting a pre-tax yield of 6.7%, which is as high a risk-free yield you can find anywhere.

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Specifics? I can't find tax free funds getting much over 3% with a little googling around. I'm in CA if it helps.

eastbay

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The Vanguard NY MMY, VYFXX, (which is not AMT-efficient) has been paying a 7-day yield of 3.55% for quite a while. Fidelity has a NY AMT-efficient fund that is paying a little less 3.34%, FSNXX.

Start with those providers. Then run a morningstar screen for a California provider. You'll probably find Fidelity, Vanguard, TRowe, or TIAACREF will be the best.

This is a great option for high tax individuals, just be careful about AMT recapture.

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Ok, there's a hole in my knowledge here, then. Isn't the 3.x% "7-day yield" an annualized number? And if so, where are you getting the 6.7% figure you quoted above?

eastbay