2.30% APY Savings Vs. Vanguard Money Market

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LIGuy82
Posts: 109
Joined: Mon Apr 16, 2018 12:51 am

2.30% APY Savings Vs. Vanguard Money Market

Post by LIGuy82 » Tue Jun 11, 2019 11:09 am

I just logged in to Personal Capital and they are advertising a savings account with 2.3% APY via UMB Bank (they mention Personal Capital getting a fee from the banks UMB farms the account out to). Vanguard Money Market (VMMX) paid 2.3% YTD, but 0.48% over the last ten years. I imagine they are tied to the same thing, and that if VMMX interest decreased, the Personal Capital account would probably decrease a similar amount. Am I wrong?

Either way, is VMMX the best place to park cash, or is there a clearly superior alternative out there. I keep very little in cash, so it does not matter much - I just hate waste and enjoy learning. Thanks in advance for your answers.

H-Town
Posts: 1694
Joined: Sun Feb 26, 2017 2:08 pm

Re: 2.30% APY Savings Vs. Vanguard Money Market

Post by H-Town » Tue Jun 11, 2019 11:23 am

You're right that it does not matter for a small portion of cash.

Wealthfront offers 2.51% APY. It looks like they're going to the right direction. Competition benefits customers.

Topic Author
LIGuy82
Posts: 109
Joined: Mon Apr 16, 2018 12:51 am

Re: 2.30% APY Savings Vs. Vanguard Money Market

Post by LIGuy82 » Tue Jun 11, 2019 11:24 am

H-Town wrote:
Tue Jun 11, 2019 11:23 am
You're right that it does not matter for a small portion of cash.

Wealthfront offers 2.51% APY. It looks like they're going to the right direction. Competition benefits customers.
Thanks for the info. Nothing’s constant, but is the Wealthfront savings a better deal in the long run than VMMX?

H-Town
Posts: 1694
Joined: Sun Feb 26, 2017 2:08 pm

Re: 2.30% APY Savings Vs. Vanguard Money Market

Post by H-Town » Tue Jun 11, 2019 12:05 pm

LIGuy82 wrote:
Tue Jun 11, 2019 11:24 am
H-Town wrote:
Tue Jun 11, 2019 11:23 am
You're right that it does not matter for a small portion of cash.

Wealthfront offers 2.51% APY. It looks like they're going to the right direction. Competition benefits customers.
Thanks for the info. Nothing’s constant, but is the Wealthfront savings a better deal in the long run than VMMX?
VMMXX dividend rate has high fluctuation. It only breaks 2% mark on July 31 2018. It essentially paid close to nothing prior to 2016. But since Dec 2018 until now, VMMXX rate has been very competitive.

https://investor.vanguard.com/mutual-fu ... ions/vmmxx

Again, a few basis points on 15k - 20k emergency/cash buffer fund is trivial at best. So it's up to you and your personal preference.

krafty81
Posts: 156
Joined: Thu Jul 05, 2018 2:01 pm
Location: San Diego, CA

Re: 2.30% APY Savings Vs. Vanguard Money Market

Post by krafty81 » Tue Jun 11, 2019 12:13 pm

Wealthfront looks pretty cool. I opened a savings account at 2.51% and it was painless. Lots of great planning tools on the website and app...

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