How safe is your money if the US defaults?

Dollar bills are seen attached to a computer on the floor of the New York Stock Exchange.
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How safe is your money market fund amid the Washington chaos? Probably pretty safe, outside of a worst-case debt-default scenario.

Only if the U.S. failed to pay its bills over an extended term—say, longer than a month or so—would depositors in normally ultra-safe money market funds hit trouble, most experts say.

That scenario would lead to a downgrade of government debt and a likely stampede of U.S. bond selling, which in turn would trigger losses in money market fund—MMF—accounts.

Though some analysts are advising preparation in case of a default, investors thus far are treating that extreme set of circumstances as unlikely.

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