@MoonShadow or CletusMcGee, what specific funds would you recommend that beat say Ally's 0.99% savings account rate?
Ally's money market account is yielding less than the savings account and Ally's 12 month CD is yielding 1.05% which doesn't seem worth it for the liquidity. In addition, the only Vanguard short term bond funds that yield more than 1% include a significant amount of corporate bonds which are not as safe as an FDIC insured bank account. For example, the short-term investment grade fund dropped 8% during the financial crisis, not a huge amount but not something I'm willing to chase 0.8% extra yield for on $1X,XXX. At $20K invested, the extra yield is worth only $2,000 after 10 years.
@Bric-a-Brac, I'll have to look into these reward checking accounts...