PUTNAM MONEY MARKET FUND
CLASS T
DISTRIBUTION PLAN AND AGREEMENT


This Plan and Agreement (the "Plan") constitutes the Distribution Plan
for the Class T shares of Putnam Money Market  Fund, a Massachusetts
business trust (the "Trust"), adopted pursuant to the provisions of Rule
12b-1 under the Investment Company Act of 1940 (the "Act") and the
related agreement between the Trust and Putnam Retail Management, L.P.
("PRM"), the principal underwriter of the Trust's shares.  During the
effective term of this Plan, the Trust may make payments to PRM upon the
terms and conditions hereinafter set forth:

Section 1.  The Trust may make payments to PRM, in the form of fees or
reimbursements, to compensate PRM for services provided and expenses
incurred by it for purposes of promoting the sale of Class T shares of
the Fund, reducing redemptions of shares, or maintaining or improving
services provided to shareholders by PRM and investment dealers.  The
amount of such payments and the purposes for which they are made shall
be determined by the Qualified Trustees (as defined below).  Payments
under this Plan shall not exceed in any fiscal year the annual rate of
0.35% of the average net asset value of the Class T shares of the Trust,
as determined at the close of each business day during the year.  A
majority of the Qualified Trustees may, at any time and from time to
time, reduce the amount of such payments, or may suspend the operation
of the Plan for such period or periods of time as they may determine.

Section 2.  This Plan shall not take effect until:

(a) it has been approved by a vote of a majority of the outstanding
Class T shares of the Fund, but only if the Plan is adopted after the
commencement of any public offering of the Trust's Class T shares or the
sale of the Fund's Class T shares to persons who are not affiliated
persons of the Fund, affiliated persons of such persons, promoters of
the Fund or affiliated persons of such promoters;

(b) it has been approved, together with any related agreements, by votes
of the majority (or whatever greater percentage may, from time to time,
be required by Section 12(b) of the Act or the rules and regulations
thereunder) of both (i) the Trustees of the Trust, and (ii) the
Qualified Trustees of the Trust, cast in person at a meeting called for
the purpose of voting on this Plan or such agreement.

Section 3.  This Plan shall continue in effect for a period of more than
one year after it takes effect only so long as such continuance is
specifically approved at least annually in the manner provided for
approval of this Plan in Section 2(b).

Section 4.  PRM shall provide to the Trustees of the Trust, and the
Trustees shall review, at least quarterly, a written report of the
amounts so expended and the purposes for which such expenditures were
made.

Section 5.  This Plan may be terminated at any time by vote of a
majority of the Qualified Trustees, or by vote of a majority of the
outstanding Class T shares of the Trust.

Section 6.  All agreements with any person relating to implementation of
this Plan shall be in writing, and any agreement related to this Plan
shall provide:

(a) that such agreement may be terminated at any time, without payment
of any penalty, by vote of a majority of the Qualified Trustees or by
vote of a majority of the outstanding Class T shares of the Trust, on
not more than 60 days' written notice to any other party to the
agreement; and

(b) that such agreement shall terminate automatically in the event of
its assignment.

Section 7.  This Plan may not be amended to increase materially the
amount of distribution expenses permitted pursuant to Section 1 hereof
without the approval of a majority of the outstanding Class T shares of
the Trust, and all material amendments to this Plan shall be approved in
the manner provided for approval of this Plan in Section 2(b).

Section 8.  As used in this Plan, (a) the term "Qualified Trustees"
shall mean those Trustees of the Trust who are not interested persons of
the Trust, and have no direct or indirect financial interest in the
operation of this Plan or any agreements related to it, and (b) the
terms "assignment", "interested person" and "vote of a majority of the
outstanding Class T shares" shall have the respective meaning specified
in the Act and the rules and regulations thereunder, subject to such
exemptions as may be granted by the Securities and Exchange Commission.

Section 9.  A copy of the Agreement and Declaration of Trust of the
Trust is on file with the Secretary of State of The Commonwealth of
Massachusetts and notice is hereby given that this instrument is
executed on behalf of the Trustees of the Trust as Trustees and not
individually, and that the obligations of or arising out of this
instrument are not binding upon any of the Trustees, officers or
shareholders individually but are binding only upon the assets and
property of the Trust.

Executed as of July 13, 2001.

PUTNAM RETAIL MANAGEMENT, L.P.         PUTNAM MONEY MARKET FUND

By: PUTNAM RETAIL MANAGEMENT,
GP, INC., General Partner

By:  /s/ Richard A. Monaghan           By:  /s/ Charles E. Porter

     Richard A. Monaghan                    Charles E. Porter
     Managing Director and                  Executive Vice President
     Chief of Mutual Fund Business