MM account yields are creeping up... news to me

[pb4uski]

Given that I have an online savings account that pays 1.1% I haven't paid much attention to MM funds recently... had essentially given up on them. This article made me aware that MM returns have been slowly creeping up and are now close to online savings... Vanguard Federal MM fund is yielding 0.87% and Vanguard Prime MM is yielding 1.07%... almost the same as my online savings account. In my case, no need for action now but somethign to keep in mind.


https://thefinancebuff.com/money-market-fund-vs-high-yield-savings-account.html

 

[jebmke]

I have noticed that too. The difference isn't a big deal for us - money in the sweep account either gets spent or invested within a month so it isn't like I will get rich on the float.

 

[fosterscik]

A nice reminder. I have a capital one 360 account that has not kept up with other online banks (had for many years - originally ING electric account). They only offer 0.75% on their savings account and I've been too lazy to open another account with a different firm (Ally etc.). It's an easy transfer to place a chunk of cash into Vanguard VMMXX. A nice easy extra 0.32%. Not going to make me rich but every dollar counts (as long as its not too much work...)!

 

[Fedup]

Nice to know. I'm sill in the lazy camp, never got around to open any CDs yet.

 

[Ready]

It looks like Ally raised the rate for their online savings to 1.15%. When I opened the account it was 1%. Nice to see, although not really material.

 

[Koolau]

Nice to see these rates (and others) trending up - finally. Still pretty much a rip compared to what the financial institutions can make with that money. Of course, I'm no expert, so YMMV.