Money: Stash The Cash Here

Money-market funds are coming to life after the Federal Reserve's repeated rate hikes. Average annual yields crossed the 1 percent mark last week and, for the first time since 2002, beat the average money-market rate paid by the banks, according to Peter Crane of iMoneynet.com. Fund yields had been about 0.5 percent for more than a year.

Granted, 1 percent isn't much, but money-fund rates follow the Fed pretty closely, so Crane expects money funds to yield 1.5 percent by the year-end. Savers might want to move some cash into those funds; they're also less likely than long-term bondholders to lose money as rates rise.

But watch the fees. Some companies have been swallowing their own expenses on those funds to keep them afloat. As rates rise, they'll want their take to go up, too.

Money: Stash The Cash Here | News