It appears that low interest rates have killed yet another money market mutual fund business. Last week eBay subsidiary PayPal [see profile] told shareholders in the PayPal Money Market Fund that it will liquidate the fund on July 29 [see filing].

In the SmartMoney "Pay Dirt" blog, Kelli Grant blames PayPal's move on fee waivers -- the firm charged 87 basis points for the fund last year, yet only 22 bps this year, after waivers, to maintain a four bps return year-to-date in 2011. According to SmartMoney, the fund held $471 million a week ago.

TechCrunch's Leena Rao also covered the news. 

Edited by: Neil Anderson, Managing Editor


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