VMMXX vs. Online bank

[vespito]

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]

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]

@CB - thanks for the comment.  That's what I thought - I already do automatic transfers, so no need for VMMXX.