From Capital One Money Market to Vanguard?

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From Capital One Money Market to Vanguard?

Post by JimmyD » Tue Feb 13, 2018 8:50 am

I've been a Capital One customer for well over a decade - back when they were ING and currently hold our primary emergency fund there along with a few sinking funds for things like car and home repairs. I set these accounts up primarily because it was easy to schedule automatic weekly transfers to build the funds up without having to manually do anything.

Now that I have a pretty good handle on our cash savings needs, I was considering moving all cash from Capital One 360 into the Vanguard money market fund within our joint taxable account and just considering everything there short term savings. The plan would be to pull from there for anything that we couldn't cash flow during the month and then rebuild it back to a set amount before diverting the additional / future excess cash elsewhere. This happens very infrequently - maybe once every couple years.

Really, my impetus for doing so is just to consolidate our accounts and institutions that hold our money.

Any major pros and cons to consider before pulling the trigger?

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Re: From Capital One Money Market to Vanguard?

Post by Sconie » Tue Feb 13, 2018 8:59 am

Vanguard is "okay," however, if you'll search a bit, I'd bet that you'll be able to find somewhat higher/better rates with alternative financial institutions.
I know that you think you understand what you thought I said, but I don't think you realize that what I said is necessarily what I meant......

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Re: From Capital One Money Market to Vanguard?

Post by onourway » Tue Feb 13, 2018 9:19 am

The only major downside is that you lose the FDIC protection, and if you choose the higher yielding Prime fund you are subject to the required SEC restrictions that could limit your access to your funds in a period of market turmoil.

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Re: From Capital One Money Market to Vanguard?

Post by mega317 » Tue Feb 13, 2018 9:27 am

I'm a big fan of consolidation for many reasons. Fewer statements and tax documents to track down, passwords to remember, headaches for heirs. To me it's worth it to give up FDIC.

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