Capital One MMA or Vanguard MMMF??

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Jesteroftheswamp
Posts: 301
Joined: Fri Sep 02, 2016 4:25 pm

Capital One MMA or Vanguard MMMF??

Post by 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
Posts: 10084
Joined: Tue Feb 27, 2007 3:26 pm
Location: Cleveland, OH

Re: Capital One MMA or Vanguard MMMF??

Post by 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
Posts: 50
Joined: Fri Jan 18, 2019 5:37 pm

Re: Capital One MMA or Vanguard MMMF??

Post by 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
Posts: 9078
Joined: Wed Jan 11, 2017 8:05 pm

Re: Capital One MMA or Vanguard MMMF??

Post by 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.
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