[JimboOmega]

SoFi offers 4.00%, and vanguards prime MMFA is 4.64%

64 basis points isn't nothing, but I think that qualifies at close - and I didn't go digging, those were just the first two that came to mind.

[dr_dshiv]

What’s the hidden risk of money markets?

[pash]

Money-market accounts are not covered by government deposit insurance. But money-market funds make a return for themselves by investing their customers’ cash in risky assets, similarly to a bank. If there’s a run on your money-market fund akin to the bank runs we’ve recently seen, the FDIC isn’t going to save you.

(Kinda. The other big distinction between a bank and a money-market fund is that the latter don’t indulge the farce of “demand deposits”. Money-market accounts are fixed-term securities, so you’ve agreed to lock up your money until some agreed upon future date, just like with a bond. That might be inconvenient for you, in comparison to a bank account, but it vastly reduces the complexity the fund faces in matching maturities of liabilities and assets to minimize run risk. As a result, together with stricter regulatory controls on their risk-taking, money-market funds fail much less often than banks do. The last time a US money-market fund broke the buck, in 2008, during the last financial crisis, the Treasury stepped in to make investors whole.)