I had been keeping a small portion of my overall portfolio (maybe 2-3%) in Vanguard Prime Money Market which had been earning as much as like 2.3% up until a couple months ago. Purpose is if I need cash to pay for a new car, large house repair, etc outside my normal monthly expenses. With the Fed cutting rates it is down to 0.92% and likely drop to near zero. I previously had an online savings account with Discover (paid 0.95% when Prime Money Market was paying 0%) until rates began rising a couple years ago and Vanguard Prime Money Market began paying better. Now I’m seeing Discover paying 1.5% and Goldman Sachs paying 1.7% and am thinking about moving savings to one of them.
Not a huge amount, but if Prime Money Market goes to zero this may work out to like $170/yr per $10k deposited in interest vs next to zero.
What do you do with your savings outside stock/bonds?
