Vanguard vs. personal bank's money market

[willongo]

I have money in Vanguard's Prime Money Market and also in Citibank's money market where I have my banking account. While looking at APY, interest rates, yields, etc. I noticed that Citibank's Money Market has an APY and interest rate of 0.15% each and that Vanguard's Prime has 0.06% on their year to date return.

How do I compare these two money markets? Vanguard has the year to date of 0.06%, the avg. 1 year annual return of 0.06%, the avg of 5 years at 2.72%, the avg. of 10 years at 2.42% and the avg. since inception at approx. 6%.

When I check Citibank online they only list the APY and interest rate both at 0.15%.

Citibank also has a Savings Plus Account with APY and interest rate both at 0.3%.

I'm confused as to why Citibank has both an APY and an interest rate listed. How are they different even when the percentages are the same values for each?

And, to re-ask the question, how do I compare Vanguard vs. Citibank? Is Vanguard's annual yield of return the same exact thing as Citibank's APY or interest rate? If so, does this mean I'm better off keeping my money in Citibank's money market (or, better yet, the Savings Plus Account) because the APY/interest rate is higher?

Mucho thanks!

 

[Alan]

There's very little difference. APY is, I think, the current yield compunded daily. Using the formula below, plug in 0.0006 for r and n=365 to convert from a yield of 0.06% to an APY gives 0.06002%

APY = (1 + r ÷ n)n – 1

 

[brewer12345]

Better yet, why not just move your cash to one of the online banks offering better tha 1% for your money?

 

[Alan]

Better yet, why not just move your cash to one of the online banks offering better tha 1% for your money?

Plenty to choose from at bankrate.com

 

[Gone4Good]

Better yet, why not just move your cash to one of the online banks offering better tha 1% for your money?

Bingo!

Capital One Direct Online Savings Account 1.3% (+10% bonus interest for maintaining a high balance)

I've used them without incident.

 

[willongo]

Yes, I've thought about researching higher interest rate online banks after surfing online for information to answer my questions and finding that there were more options out there for me. I guess I like the immediate liquidity of having money in citibank. But, I suppose I could rely on my checking account for that. Thanks for the links, guys!