Goodbye Capital One 360!!

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
anoop
Posts: 690
Joined: Tue Mar 04, 2014 1:33 am

Re: Goodbye Capital One 360!!

Post by anoop » Fri Jan 12, 2018 1:21 am

Abe wrote:
Fri Jan 05, 2018 1:45 pm
Vanguard Municipal Money Market Fund VMSXX is at 1.39%

Vanguard Prime Money Market Fund VMMXX is at 1.38%
Those are pretty good yields!

DrivingFun
Posts: 158
Joined: Wed Sep 19, 2007 6:12 pm

Re: Goodbye Capital One 360!!

Post by DrivingFun » Fri Jan 12, 2018 9:09 am

Abe wrote:
Fri Jan 05, 2018 1:45 pm
Vanguard Municipal Money Market Fund VMSXX is at 1.39%

Vanguard Prime Money Market Fund VMMXX is at 1.38%
The problem with these iirc is that they rate jumps all over the place. So usually a regular high yield savings account is better.

onourway
Posts: 1113
Joined: Thu Dec 08, 2016 3:39 pm

Re: Goodbye Capital One 360!!

Post by onourway » Fri Jan 12, 2018 9:27 am

ChosenGSR wrote:
Fri Jan 12, 2018 9:09 am

The problem with these iirc is that they rate jumps all over the place. So usually a regular high yield savings account is better.
I wouldn't quite characterize them as 'jumping all over the place.' They generally follow the direction of the federal funds rate.

The recent distributions of the funds are as follows:

Municipal Money Market
01/02/2018 1.06%
12/01/2017 0.83%
11/01/2017 0.81%
10/02/2017 0.75%
09/01/2017 0.70%
08/01/2017 0.74%
07/03/2017 0.70%
06/01/2017 0.70%
05/01/2017 0.77%
04/03/2017 0.60%
03/01/2017 0.55%
02/01/2017 0.57%
01/03/2017 0.55%
12/01/2016 0.48%
11/01/2016 0.66%
10/03/2016 0.57%
09/01/2016 0.39%
08/01/2016 0.34%

Prime Money Market
01/02/2018 1.30%
12/01/2017 1.16%
11/01/2017 1.13%
10/02/2017 1.12%
09/01/2017 1.10%
08/01/2017 1.09%
07/03/2017 1.02%
06/01/2017 0.96%
05/01/2017 0.91%
04/03/2017 0.83%
03/01/2017 0.79%
02/01/2017 0.77%
01/03/2017 0.69%
12/01/2016 0.61%
11/01/2016 0.60%
10/03/2016 0.55%
09/01/2016 0.48%
08/01/2016 0.45%

The gap has rapidly closed between MM funds and high yield savings accounts. It's now worth considering for anyone paying more than ~25% total tax. And given that the Prime Money Market is pretty much on par with the best savings accounts, if the muni's drop you can switch to Prime immediately.

Bob-a-job
Posts: 32
Joined: Wed May 17, 2017 6:25 am
Location: NH

Re: Goodbye Capital One 360!!

Post by Bob-a-job » Fri Jan 12, 2018 12:04 pm

I have used Ally and C1360 for many years and hve not noticed any major problems accessing either with an Ipad. There are no fees or minimums with accounts for either banks, so why not keep both accounts active?

DrivingFun
Posts: 158
Joined: Wed Sep 19, 2007 6:12 pm

Re: Goodbye Capital One 360!!

Post by DrivingFun » Fri Jan 12, 2018 2:32 pm

onourway wrote:
Fri Jan 12, 2018 9:27 am
The gap has rapidly closed between MM funds and high yield savings accounts. It's now worth considering for anyone paying more than ~25% total tax. And given that the Prime Money Market is pretty much on par with the best savings accounts, if the muni's drop you can switch to Prime immediately.
However just 6 months ago it was less than high yield savings accounts. What gives us confidence that it will still be on par/better in 6 months? Just curious whether it's worth it moving my savings to Vanguard, not wanting to have to move it back in a few months time.

onourway
Posts: 1113
Joined: Thu Dec 08, 2016 3:39 pm

Re: Goodbye Capital One 360!!

Post by onourway » Fri Jan 12, 2018 3:44 pm

ChosenGSR wrote:
Fri Jan 12, 2018 2:32 pm
However just 6 months ago it was less than high yield savings accounts. What gives us confidence that it will still be on par/better in 6 months? Just curious whether it's worth it moving my savings to Vanguard, not wanting to have to move it back in a few months time.
There is no confidence either way. There have been historical periods where MM funds have yielded much better rates than savings accounts, and vice-versa. I think you just need to be willing to adapt to whatever the current market offers. Right now I don't think the MM accounts are enough better to switch if it means opening new accounts, etc. unless you are in one of the higher tax brackets and/or you have a large amount of money to move. On the other hand I already have an account with Vanguard and moving between Vanguard and Capital One takes less than 2 days in either direction and about 1 minute of time. I'm not locked in to either provider.

User avatar
Index Fan
Posts: 2544
Joined: Wed Mar 07, 2007 12:13 pm
Location: The great Midwest

Re: Goodbye Capital One 360!!

Post by Index Fan » Fri Jan 12, 2018 3:49 pm

I moved from Capital One to Ally and have been happy with the decision.

One thing I've noticed over the years is that businesses who are very good usually don't stay that way. Management is replaced or mucks about with their core success and before you know it, things go downhill.

All things change.
"Optimum est pati quod emendare non possis." | -Seneca

Post Reply