Money fund yields (7-day, annualized, simple, net) increased by 1 bp to 3.58% on average during the week ended Friday, January 2 (as measured by our Crane 100 Money Fund Index), after decreasing 1 bp the week prior. Fund yields should inch lower in coming days as they digest the last of the Fed's Dec. 10 25 bps rate cut. Yields were 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23.
The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 679), shows a 7-day yield of 3.48%, up 1 bp in the week through Friday. Prime Inst money fund yields were up 3 bps at 3.69% in the latest week. Government Inst MFs were up 2 bps at 3.59%. Treasury Inst MFs were down 1 bp at 3.52%. Treasury Retail MFs currently yield 3.30%, Government Retail MFs yield 3.29% and Prime Retail MFs yield 3.49%, Tax-exempt MF 7-day yields were down 36 bps to 2.40%.
Money market mutual fund assets surged by $42.5 billion on Friday (1/2), hitting a new record high of $8.151 trillion after breaking the $8.1 trillion barrier for the first time ever on 12/26, according to our Money Fund Intelligence Daily. Assets have risen $47.1 billion in the week through Friday and they've jumped by $42.5 billion in January month-to-date (through 1/2). MMF assets increased by $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion in July, $6.7 billion in June and $100.9 billion in May. But MMFs decreased $24.4 billion in April. Assets increased by $2.8 billion in March, $94.2 billion in February, and $52.8 billion last January.
Weighted average maturities were at 38 days for the Crane MFA and 40 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (1/2), 151 money funds (out of 789 total) yield under 3.0% with $197.3 billion in assets, or 2.4%; 638 funds yield between 3.00% and 3.99% ($7.954 trillion, or 97.6%); and now zero funds yield over 4.0%.
Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.30%, after falling 1 basis point two weeks prior. The latest Brokerage Sweep Intelligence, with data as of January 2, shows no changes over the past week. Four of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch, Morgan Stanley and Schwab.
In related brokerage sweep news, a notice titled, "FINRA Orders American Portfolios Financial Services to Pay $4.6 Million in Restitution for Overcollection of Fees, Retention of Surplus Interest," tells us, "FINRA has ordered American Portfolios Financial Services, Inc. (APFS) to pay $4.6 million in restitution to customers impacted by the firm's inaccurate representation of how it calculated its fees and its retention of undisclosed, surplus interest. The fees and surplus interest were earned from customers' funds in the firm's bank deposit program between April 2018 and September 2022. The firm was also fined $550,000 for the violations."
FINRA continues, "Bank deposit programs allow broker-dealers to automatically transfer customers' uninvested cash balances from their brokerage accounts into interest-bearing, Federal Deposit Insurance Corporation-insured bank accounts. These programs are designed to help customers earn interest on cash that might otherwise sit idle. During the period at issue, APFS enrolled approximately 85,000 customers in its bank deposit program."
They explain, "From April 2018 through September 2022, APFS provided customers with inaccurate disclosures about how it calculated per-account fees for customers enrolled in its bank deposit program. Rather than using a formula tied to the Federal Funds Target rate, as stated in the disclosures, APFS first determined customer yields based on factors such as the rates paid by its competitors and retained the remaining interest paid by the participating banks, less other administrative fees, as its fee. Over the entire relevant period, APFS collected more than $3 million in aggregate fees beyond what the disclosed formula would have yielded."
The release states, "APFS also did not disclose that it retained surplus interest—totaling approximately $1.25 million -- when interest rate changes created excess proceeds. Finally, APFS incorrectly credited the retained excess administrative fees and surplus interest as revenue in its net capital calculation, resulting in the firm filing inaccurate monthly reports with FINRA."
Bill St. Louis, Executive VP and Head of FINRA Enforcement, comments, "While bank deposit programs may offer useful features to customers, it is important for firms to ensure compliance with a range of relevant FINRA and SEC rules. Firms must ensure accuracy in customer communications, including how fees are calculated and what interest customers will earn. When firms fail in that obligation -- whether through inaccurate formulas, undisclosed interest retention or inadequate supervisory controls -- customers can suffer real financial harm, as demonstrated by the substantial restitution required in this case."
FINRA adds, "From April 2018 to May 2023, APFS lacked a system reasonably designed to supervise the bank deposit program. APFS had no supervisory system, including written procedures, to ensure that the customer disclosures accurately communicated all material information about the bank deposit program or that the firm calculated its fees in accordance with disclosures sent to its customers."
Finally, the release says, "APFS was acquired by Osaic Holdings, Inc. in November 2022, and was merged into Osaic Wealth, Inc. in October 2024. The fine imposed in this matter reflects that Osaic provided substantial assistance to FINRA in calculating the appropriate restitution, that APFS disclosed the underpayments to FINRA in October 2022, at which time it began applying the disclosed formula to calculate its fee, and that Osaic began paying restitution to affected customers before the settlement in this matter was finalized. In settling this matter, APFS consented to the entry of FINRA's findings, without admitting or denying the charges."
For more, see Investment News' article, "FINRA orders Osaic-owned firm to repay millions after cash sweep fee failures," and see these Crane Data News stories on Brokerage Sweeps actions: "BNY to Manage OpenEden Tokenized $TBILL Fund; Schwab Sweeps Sued" (8/18/25), "Weekly Money Fund Portfolio Holdings; Barron's: SEC Done w/MS Sweeps" (5/21/25), "MMF Assets Plunge on Tax Outflows; ignites on Brokerage Sweep Suits" (4/21/25), "Weekly Portfolio Holdings; Inv News on Pershing Cash Grab; Osaic Suit" (2/20/25), "MMF Assets Plunge on Tax Outflows; ignites on Brokerage Sweep Suits" (4/21/25), "WSJ: SEC, Brokerage Sweeps Settle" (1/21/25), "Schwab Latest Firm Sued Over Sweeps; BlackRock's Small: MMFs Stickier" (12/12/24), "Wells Quiet on Sweeps on Q3 Call" (10/18/24), "Barron's Writes on Brokerage Sweep Woes; Reuters on Rate Cuts, MMFs" (9/23/24), "Alight Money Fund Liquidates; Bloomberg Law on Brokerage Sweep Suits" (9/19/24), "Sept. MFI: Sticking with Prime Inst; MMFs Hit Record; Sweeps Scrutiny" (9/9/24), "Barron's: JPMorgan Sued on Sweeps" (8/29/24), "More on SEC Sweeps Scrutiny; Inv News on Sweeps, UBS's Earnings Call" (8/20/24), "Law Firm Says Bolster Disclosures, Rates on Sweeps; Crane Index 5.11%" (8/13/24), "Barron's: BofA Cites Risk from Sweeps" (8/8/24), "Central Bank of Ireland on Fund Regulations; Brokerage Sweeps Lawsuits" (8/5/24), "Tradeweb Completes ICD Acquisition; AdvisorHub on Wells Sweep Suit" (8/2/24) and "IN: Ameriprise Sued Over Sweeps" (7/31/24).
