Author Topic: Vanguard Prime Money Market Fund vs No-Penalty CD  (Read 755 times)

jpdx

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Vanguard Prime Money Market Fund vs No-Penalty CD
« on: January 22, 2020, 05:50:45 PM »
If I am reading correctly, Vanguard Prime Money Market Fund's yield is down to 1.69%. My savings account is down to 1.7%. So I'm considering of moving some of my cash/emergency fund to No-Penalty CDs which are yielding 2% with a 11-month term.

If I need access to the cash before 11-months, I'd have to withdraw the full amount of the CD, so I'm thinking of opening multiple of them in partial increments. Good idea or bad idea?

MustacheAndaHalf

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Re: Vanguard Prime Money Market Fund vs No-Penalty CD
« Reply #1 on: January 23, 2020, 06:14:27 AM »
On nerdwallet, the best no-penalty CD rate is 1.90%
https://www.nerdwallet.com/best/banking/no-penalty-cds

Can you share the bank offering the 2.0% rate?
Do they tend to charge a lot of fees, or do they have a good customer reputation?

jpdx

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Re: Vanguard Prime Money Market Fund vs No-Penalty CD
« Reply #2 on: January 23, 2020, 08:48:56 PM »
Marcus currently has a 11-mo no penalty CD at 2% APY. The nerdwallet link is showing a 7-mo CD by default.