The fund's objectives are to seek preservation of capital, liquidity, and, consistent with these objectives, the highest current income exempt from federal income taxes.
Invests in municipal securities that mature in 13 months or less. Its average maturity will not exceed 90 days.
Investors whose income tax level enables them to benefit from tax-exempt income. Not appropriate for tax-deferred retirement plans, such as IRAs. Some income may be subject to state and local taxes.
Click on the risk/reward spectrum below to view the funds in that category
The Tax-Exempt Money Fund has the lowest risk/reward profile of all the T. Rowe Price federal tax-free funds. Its stability makes it a good place for money between investments or during uncertain market conditions. The fund has less exposure to interest rate risk than a higher-yielding short-term bond fund.
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.