Alternative to checking account for short term deposit

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Topic Author
MoDosh
Posts: 5
Joined: Tue Feb 05, 2019 3:54 pm

Alternative to checking account for short term deposit

Post by MoDosh » Mon Feb 11, 2019 3:09 pm

We have a sum of money coming to us soon that will sit in our checking account for several months. Money probably will go to Vanguard funds eventually. In the meantime what to do rather than sitting in bank account with zero interest.

What about Betterment smart saver this seems to be not a bad option?

https://www.betterment.com/smart-saver/

Wondering what Vanguard has, do they have a similar Product, some type of CD or money market fund that would only be used for two months then probably cleaned out. Obviously I don't want to pay fees or penalties for early withdrawal etc. etc.

Also what about betterment in general, they seem to have quite an aggressive advertising program on various podcast I listen to?

Rupert
Posts: 4074
Joined: Fri Aug 17, 2012 12:01 pm

Re: Alternative to checking account for short term deposit

Post by Rupert » Mon Feb 11, 2019 3:16 pm

Vanguard's Prime Money Market fund is presently paying about 2.5%. Alternatively, there are lots of online savings accounts with FDIC insurance that are paying 2+% right now.

wriley4409
Posts: 30
Joined: Tue Feb 28, 2017 11:41 am
Location: Little Rock,AR

Re: Alternative to checking account for short term deposit

Post by wriley4409 » Mon Feb 11, 2019 3:19 pm

T-bills wouldn't be a bad choice either.

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Clever_Username
Posts: 1171
Joined: Sun Jul 15, 2012 12:24 am
Location: Southern California

Re: Alternative to checking account for short term deposit

Post by Clever_Username » Mon Feb 11, 2019 3:26 pm

Vanguard's money market account VMMXX sounds like a natural place, especially if it's already likely going to Vanguard. Current rate is about 2.5%.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

nguy44
Posts: 97
Joined: Sun Jul 09, 2017 1:52 pm

Re: Alternative to checking account for short term deposit

Post by nguy44 » Mon Feb 11, 2019 3:35 pm

Agree with others, VMMXX seems a natural for your situation. I did this for an unexpected inheritance I received.

gmehta
Posts: 16
Joined: Fri Oct 12, 2018 9:28 pm

Re: Alternative to checking account for short term deposit

Post by gmehta » Mon Feb 11, 2019 3:50 pm

How short is your short term? I have put money in VCADX for now. It is intermediate Muno Bond Fund. Returns are Federal and State Tax exempt.

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fortfun
Posts: 1497
Joined: Tue Apr 19, 2016 7:31 pm

Re: Alternative to checking account for short term deposit

Post by fortfun » Mon Feb 11, 2019 3:54 pm

MoDosh wrote:
Mon Feb 11, 2019 3:09 pm
We have a sum of money coming to us soon that will sit in our checking account for several months. Money probably will go to Vanguard funds eventually. In the meantime what to do rather than sitting in bank account with zero interest.

What about Betterment smart saver this seems to be not a bad option?

https://www.betterment.com/smart-saver/

Wondering what Vanguard has, do they have a similar Product, some type of CD or money market fund that would only be used for two months then probably cleaned out. Obviously I don't want to pay fees or penalties for early withdrawal etc. etc.

Also what about betterment in general, they seem to have quite an aggressive advertising program on various podcast I listen to?
ally no penalty cd 2.3%

Topic Author
MoDosh
Posts: 5
Joined: Tue Feb 05, 2019 3:54 pm

Re: Alternative to checking account for short term deposit

Post by MoDosh » Mon Feb 11, 2019 4:05 pm

Short term is until I read all the books and decide how to invest :) 2 months .... Some will be no brainers like Vangurard's index funds.

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Wiggums
Posts: 114
Joined: Thu Jan 31, 2019 8:02 am

Re: Alternative to checking account for short term deposit

Post by Wiggums » Mon Feb 11, 2019 4:08 pm

Another vote for vanguard money market.

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