With the SARB repo rate at 7.00% (hiked in May 2026), South African money market funds are yielding around 7% — well above inflation and significantly more than a typical bank savings account pays. If you’re holding cash for an emergency fund, saving for a short-term goal, or parking a lump sum while you decide what to do with it, a money market fund is almost certainly the best home for that cash.
This page compares the main money market funds available to South African investors — their current yields, fees, and minimums — and helps you choose the right one. For a full explainer on how money market funds work, what they invest in, and the risks, see my money market funds guide.
Disclaimer: I am not a financial advisor. This information is for educational purposes only and should not be considered as financial advice. Always do your own research and consider seeking advice from a qualified financial professional before making any investment decisions.
Quick comparison
Yields below are nominal annual yields as at 6 August 2026, sourced from daily fund yield data. They change daily with the interest rate environment, but the relative ordering between funds stays fairly stable. Always check the current yield on the fund manager’s website before investing.
| Fund | Yield (6 Aug 2026) | TER | Min. lump sum | Min. debit order |
|---|---|---|---|---|
| Allan Gray Money Market | 7.04% | 0.29% | R20,000 | R500/month |
| Nedgroup Investments Money Market | ~7.28%* | ~0.55% | R10,000 | R500/month |
| STANLIB Money Market | 6.98% | ~0.55% | R5,000 | R500/month |
| Satrix Money Market | 6.86% | low (passive) | No min. (via SatrixNOW) | R500/month |
| Coronation Money Market | 6.91% | ~0.50% | R100,000 | R500/month |
| Ninety One Money Market | 6.78% | ~0.50% | R10,000 | R500/month |
| Old Mutual Money Market | 6.70% | ~0.50% | R10,000 | R500/month |
* Nedgroup yield from April 2026 factsheet — not available in daily yield data. Approximate.
The current rate environment
Money market fund yields track short-term interest rates, which follow the SARB’s repo rate. The repo rate was hiked to 7.00% at the May 2026 MPC meeting, pushing prime to 10.50%. Money market funds typically yield 50–75 basis points above the repo rate, which is why most funds are currently in the 6.7–7.3% range.
With inflation around 3–4%, that means real returns (yield minus inflation) of roughly 3–4% — historically attractive for cash. This won’t last forever: if the SARB cuts rates, money market yields will follow within weeks. But for now, cash is earning a meaningful real return.
The funds compared
Allan Gray Money Market Fund
The standout for low fees. At 0.29% TER, it’s one of the cheapest money market funds in South Africa, and the yield (7.04% as at 6 August 2026) is competitive with funds charging twice as much. The trade-off is the R20,000 minimum lump sum — higher than STANLIB or Satrix. If you have R20,000 or more to park, this is hard to beat on cost.
Launched in 2001, the fund is benchmarked against the Alexander Forbes STeFI 3-month Index. Distributions are declared monthly. Liquidity is T+1 — submit a redemption today, money in your bank account the next business day. No notice period, no early-withdrawal penalty.
Nedgroup Investments Money Market Fund
Currently the highest yielder among the well-known funds at approximately 7.28%, with a R10,000 minimum. The TER is around 0.55% — higher than Allan Gray, but the yield has historically been competitive. If you want the highest yield from a name you recognise, this is worth a look.
STANLIB Money Market Fund
The lowest minimum lump sum among the major fund managers at R5,000. Yielding 6.98% as at 6 August 2026 with a TER around 0.55%. If you’re starting with a smaller amount and want a well-known manager, STANLIB is a solid choice.
Satrix Money Market Fund
The passive, low-cost option. Satrix is known for index-tracking, and their money market fund follows the same philosophy — low fees, no frills. Available through SatrixNOW with no minimum investment, making it the most accessible option if you’re starting with a small amount. Yielding 6.86% as at 6 August 2026.
Coronation Money Market Fund
A well-established fund from one of South Africa’s best-known asset managers. Yielding 6.91% with a TER around 0.50%. The R100,000 minimum lump sum is the highest on this list — if you’re starting small, look elsewhere first.
Ninety One Money Market Fund
Formerly Investec Asset Management, Ninety One runs a solid money market fund yielding 6.78% as at 6 August 2026. Regulated under CISCA and Regulation 28 compliant, making it suitable for retirement fund allocations. Minimums and fees vary by share class — check the fund factsheet.
Old Mutual Money Market Fund
One of the largest money market funds in South Africa by assets under management. Yielding 6.70% as at 6 August 2026, managed by Futuregrowth. Monthly distributions available. The yield is slightly lower than peers, but the fund’s size and stability appeal to conservative investors.
How to choose
For most people, the choice comes down to three things:
- How much you’re investing. Under R5,000? Satrix (via SatrixNOW) or STANLIB. Under R20,000? STANLIB, Nedgroup, or Satrix. R20,000+? Allan Gray becomes the best option on fees.
- How much fees matter to you. Over a year or two, the difference between a 0.29% TER and a 0.55% TER on R100,000 is R260 — not life-changing. But if you’re holding a large balance, the lower fee compounds. Allan Gray (0.29%) is the clear winner on cost.
- Where you already invest. If you already have an account with Allan Gray, STANLIB, or another provider, adding a money market fund to the same platform is usually the path of least resistance. Don’t open a new account at a different provider just to save 0.10% on fees.
If I had to pick one: Allan Gray Money Market Fund for R20,000+, STANLIB or Satrix for smaller amounts. But honestly, the yield differences between the top funds are small — the most important thing is simply to move your cash out of a low-interest bank account and into a money market fund.
Money market fund vs bank savings vs fixed deposit
| Feature | Money market fund | Bank savings account | Fixed deposit |
|---|---|---|---|
| Typical yield | ~7% | 3–5% | 7–8% |
| Access to funds | 1–2 business days | Instant | Locked until maturity |
| Deposit insurance (CODI) | No | Yes (R100k per bank) | Yes (R100k per bank) |
| Interest rate | Floating (tracks repo) | Floating (set by bank) | Fixed for the term |
| Penalty for early withdrawal | None | None | Yes (usually) |
| Diversification | Across multiple issuers | Single bank | Single bank |
The key trade-off: money market funds pay more than bank savings accounts but aren’t covered by deposit insurance. Fixed deposits can match or slightly beat money market fund yields and lock in today’s rate — valuable if rates are falling — but your money is locked away.
For an emergency fund: money market fund or a high-yield bank call account. For a known expense in 6–24 months (house deposit, tax bill): fixed deposit. For long-term wealth: none of these — that’s what ETFs and unit trusts are for.
Tax considerations
Money market fund distributions are taxed as interest income at your marginal tax rate. However, SARS gives every individual an annual interest exemption:
- R23,800 per year if you’re under 65.
- R34,500 per year if you’re 65 or older.
That means if you’re earning around 7% and have roughly R340,000 or less invested (under 65), your money market interest is entirely tax-free. Above that, you pay tax at your marginal rate on the excess.
You can also hold a money market fund inside a Tax-Free Savings Account (TFSA), which shields all interest from tax forever. But think carefully before using your TFSA for cash — the tax shelter is more valuable on high-growth assets like equity ETFs, where the tax savings over 20 years are far larger. A money market fund inside a TFSA is fine if you’ve already maxed out your TFSA with growth assets and want to use any remaining allowance for cash. Otherwise, save the TFSA for equities.
Are they safe?
Money market funds are among the safest investments available, but they are not bank deposits and are not covered by the Corporation for Deposit Insurance (CODI), which protects bank deposits up to R100,000 per depositor per bank.
Instead, money market funds are protected by:
- Diversification. A fund spreads your money across multiple issuers (government, several banks, selected corporates), so no single default can wipe out your investment.
- Regulation. Funds are regulated under the Collective Investment Schemes Control Act (CISCA) and overseen by the FSCA. Your money is held by an independent trustee, separate from the fund manager’s own balance sheet.
- Short duration. Funds invest in instruments with a weighted average maturity of less than 90 days, limiting exposure to interest rate movements.
Historically, South African money market funds have had negligible capital losses. The African Bank collapse in 2014 cost some funds a few cents in the rand, but diversification limited the damage. The risk is low, but it is not zero — and it is not the same as a bank deposit guarantee.
How to invest
- Choose a fund. Pick from the table above based on your minimum investment and fee preference.
- Open an account. Go to the fund manager’s website (Allan Gray, STANLIB, Nedgroup, Satrix, etc.) or use an investment platform. You’ll need your ID and proof of address for FICA.
- Deposit funds. EFT or debit order. For debit orders, set up an automatic monthly transfer — even R500/month builds a meaningful emergency fund over time.
- Withdraw when you need to. Submit a redemption request and the money is in your bank account within 1–2 business days. No penalties, no notice period.
Frequently asked questions
Can I lose money in a money market fund?
It’s rare but possible. The fund targets a stable unit price of R1.00, but if an underlying issuer defaults, the unit price could drop slightly. Diversification limits this risk — but there’s no deposit insurance guarantee like a bank account has.
What’s the difference between a money market fund and a money market account?
A money market fund is a unit trust regulated under CISCA — your money is pooled and invested in short-term instruments, with returns net of fees. A money market account is a bank deposit product — your money is on the bank’s balance sheet and covered by CODI up to R100,000. Funds usually pay more; accounts are insured. Know which one you’re opening.
Do money market fund yields change?
Yes, daily. Yields track short-term interest rates, which follow the SARB repo rate. If the SARB cuts rates, your fund’s yield will drop within weeks. If they hike, it rises. This is why money market funds are described as having a “floating” yield.
Should I hold my money market fund in a TFSA?
Generally no — save your TFSA allowance for high-growth assets like equity ETFs, where the tax savings over decades are far larger. A money market fund in a TFSA only makes sense if you’ve already maxed out your TFSA with growth assets and want to use remaining allowance for cash.
What’s the minimum I can invest?
It depends on the fund. Satrix Money Market via SatrixNOW has no minimum. STANLIB requires R5,000. Allan Gray requires R20,000. Coronation requires R100,000. Most funds accept R500/month debit orders regardless of the lump sum minimum.
The bottom line
With yields around 7% and the SARB repo rate at 7.00%, money market funds are one of the best homes for cash in South Africa right now. They beat bank savings accounts by 2–4 percentage points, offer next-day access, and charge low fees. For most investors, Allan Gray’s fund (0.29% TER) is the best choice if you have R20,000+; Satrix or STANLIB if you’re starting smaller.
But remember: money market funds are for parking cash, not growing wealth. They preserve capital and earn a decent yield while your money waits. For long-term growth — retirement, wealth building, beating inflation over decades — you need growth assets like ETFs or unit trusts. Use money market funds for your emergency fund and short-term savings. Use equities for everything else.