Funds offer full checking

January 26, 1992|By Jonathan Lansner | Jonathan Lansner,Orange County Register

Money market mutual funds have been a popular place to park idle cash because they offer higher yields than bankers pay on equally liquid savings accounts.

The funds' unblemished safety-of-principal record comes from investing in short-term, high-quality assets.

But even with check-writing options, various restrictions make money funds impractical to use as a replacement for the banker's everyday checking account.

That has changed at two fund companies. They allow unlimited check-writing on their money funds. An initial deposit of $1,000 is required.

United Services -- (800) 873-8637) -- and the Boston Co. -- (800) 343-6324 -- offer no-fee, no-minimum checking on money funds. United offers the service on its Treasury money fund; Boston has on four funds.

One drawback to using a money fund as one's sole checking account is getting cash.

United is trying to add automated teller machine access to its fund. But it has found resistance from banks that own teller machines.

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