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Learning, Sharing, and Teaching => Reader Recommendations => Topic started by: GUNDERSON on September 10, 2018, 09:40:24 AM

Title: Interest rate for emergency savings
Post by: GUNDERSON on September 10, 2018, 09:40:24 AM

Hi folks,
I've seen a lot of people recommending Ally bank with its 1.85% rate. It appears that money market accounts in Vanguard are paying almost the same rate lately, and its more convenient for me to keep money there. But am I missing anything? Is the interest compounded differently?
Thanks!

Title: Re: Interest rate for emergency savings
Post by: HipGnosis on September 10, 2018, 10:32:09 AM

Does Vanguard charge an account / maintenance fee?
Bankrate.com says Citi Bank is paying 2.1%.
https://www.bankrate.com/banking/savings/rates/

Title: Re: Interest rate for emergency savings
Post by: index on September 10, 2018, 01:56:09 PM

VMMXX is paying 2.08% available at Vanguard. Just link the Brokerage to your checking account. Money is available next business day.

Title: Re: Interest rate for emergency savings
Post by: Icecreamarsenal on September 11, 2018, 05:43:39 AM

Looks like the expense ratio for VMMXX and VMRXX are 0.16% and 0.1% respectively.  That still puts it ahead of Ally, barely.

Title: Re: Interest rate for emergency savings
Post by: Radagast on September 14, 2018, 03:49:36 PM

Quote from: Icecreamarsenal on September 11, 2018, 05:43:39 AM

Looks like the expense ratio for VMMXX and VMRXX are 0.16% and 0.1% respectively.  That still puts it ahead of Ally, barely.

SEC yields already account for expenses, so the yield is what it says it is. That is why VMMXX is lower than VMRXX.