Quicken is Asking if I Want To Track My Money Market Fund as a Cash Balance
If your brokerage tracks your cash balance in a money market fund, during your first investment transaction download in Quicken, it will ask if you want to track this as a simple cash balance. If you say yes, then Quicken adds a Placeholder transaction.
Many brokerages invest your cash balance in a money market fund. (A money market fund is a mutual fund that invests only in money market investments, such as short-term debt instruments, certificates of deposit, commercial paper, Treasury bills, and so on.) You can track your money market fund manually, the same as any other mutual fund security.
When you download transactions from your brokerage, Quicken may give you a chance to track the money market security as a simple cash balance. This simplifies both your record keeping and your transaction download. (Not supported by all financial institutions)
It also gives you the following benefits:
You can easily see your available cash.
You no longer need to enter a corresponding money market fund transaction for each cash transaction you make. (For more information, see discrepancy in price history.)
Quicken can still calculate the performance of your money market fund, just as it does for any other security.