Capital One MMA or Vanguard MMMF??

[Jesteroftheswamp]

Every month I save money and I am debating on adding to my Cap One Savings account which pays 2% and the Vanguard money market fund. I have trouble deciphering the return on Vanguard. Which is better? Please keep in mind my retirement accounts are taking care of and I also invest in Total Stock Index so for this example which savings account is better?

[sport]

The Vanguard account has a higher yield. The bank account is FDIC insured. I use a Vanguard MM fund. You get to choose which you prefer.

[boglenomics]

For me the ~.4% difference in yield is worth it for the FDIC coverage, the fantastic customer service / technology, and quick transfer of money to my checking account which is also with Capital One. After tax consideration the yield difference is even less.

If that separation of yield grows by much more I will be harder pressed to consider Vanguard instead.

[aristotelian]

If you haven't done Capital One before, you will get a nice bonus which puts it over the top. I recently moved my EF to BBVA Compass for a similar deal, 2.40% plus $100 bonus.