Money-market instruments are the safest, most liquid form of debt outside cash itself. They include Swiss Confederation Treasury bills, German Bubills, French BTFs, Italian BOTs, US T-bills, commercial paper issued by blue-chip corporates, and overnight repurchase agreements between banks. Yields track the central-bank policy rate closely and are used by treasurers to park cash safely while earning a return.
Retail investors usually access the money market through money-market funds (MMFs), which pool capital and buy a diversified basket of short-dated instruments. In 2024 a Swiss CHF money-market fund typically yielded around 1.4%, compared with 0.1–0.5% on a standard checking account. The credit risk is very low but not zero — investors should still check the underlying portfolio for exposure to weaker issuers.
MMFs are the right home for cash you do not need this month but expect to use within a year, particularly amounts above the deposit-insurance ceiling. Settlement is usually one business day. Watch for total expense ratios above 0.30% — at money-market yields, fund costs eat directly into your return.
An investor parks CHF 200,000 of company sale proceeds in a Swiss CHF money-market fund yielding 1.4% net of fees, while she waits for property to come on the market. Over six months she earns about CHF 1,400 — versus roughly CHF 100 if left in a checking account.