Well, I have to disagree somewhat. If you shop around, you can get some decent T-Bill equivalent yields in simple funds or ETF's that are hands off without a lot of ongoing weekly maintenance. I'm getting 4.24% right now in SCOXX, in my tax-deferred 401k. I also have a chunk of cash in FZEXX in my taxable account that is earmarked for an upcoming real estate purchase. I need every tax break I can get, so this fund gives me a Tax Equivalent yield of 4.45%, based on the current 7 day yield of 3.03%. TEY = TX/(1-t), where TEY is tax equivalent yield, TX is tax exempt yield, and t is taxable bracket. 4.45% = 3.03%/(1 -.32). And this is in my no income tax state of NH. The TEY would be even higher in a state like NY, Cali, or Mass, maybe something over 5%, I'd guess?