Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Vanguard vs. personal bank's money market
Old 12-04-2010, 11:56 AM   #1
Dryer sheet wannabe
 
Join Date: Oct 2010
Location: Bronx
Posts: 18
Vanguard vs. personal bank's money market

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!
__________________

__________________
willongo is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-04-2010, 12:52 PM   #2
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,105
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
__________________

__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is online now   Reply With Quote
Old 12-04-2010, 02:46 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Better yet, why not just move your cash to one of the online banks offering better tha 1% for your money?
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 12-04-2010, 02:51 PM   #4
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,105
Quote:
Originally Posted by brewer12345 View Post
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
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is online now   Reply With Quote
Old 12-04-2010, 02:51 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
 
Join Date: Sep 2005
Posts: 5,381
Quote:
Originally Posted by brewer12345 View Post
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.
__________________
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Old 12-04-2010, 06:30 PM   #6
Dryer sheet wannabe
 
Join Date: Oct 2010
Location: Bronx
Posts: 18
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!
__________________

__________________
willongo is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Investment Return graph on Vanguard Personal site... thefed FIRE and Money 7 07-26-2010 08:57 PM
Vanguard Tax-Exempt Money Market (VMSXX) Yield = 4.46% tulak FIRE and Money 18 09-25-2008 09:07 PM
Vanguard Prime Money Market Fund? cyclone6 FIRE and Money 8 05-02-2008 07:50 AM
Vanguard Personal Financial Planning Services lauraf13 FIRE and Money 36 09-03-2003 12:13 PM

 

 
All times are GMT -6. The time now is 10:18 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.