Author Topic: VMMXX vs. Online bank  (Read 1631 times)

vespito

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VMMXX vs. Online bank
« on: April 03, 2014, 11:46:10 AM »
Hi all,

What is the advantage to putting money into the Vanguard Prime Money Market fund vs. an online bank with a higher interest rate?  Other than having funds "at the ready" to purchase Vanguard funds or other investments, are there other reasons?

Just curious to see if I am missing something obvious.

CB

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Re: VMMXX vs. Online bank
« Reply #1 on: April 03, 2014, 12:13:24 PM »
No advantage at all. You can link your bank account to your Vanguard account and use it to make same-day mutual fund purchases anyway, so no reason to keep any "cash" in VMMXX. 

vespito

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Re: VMMXX vs. Online bank
« Reply #2 on: April 03, 2014, 12:48:34 PM »
@CB - thanks for the comment.  That's what I thought - I already do automatic transfers, so no need for VMMXX.