money markets and FDIC

[wallygator69]

Howdy,


Hypothetically If I had a ROTH with $400k in the Vanguard Federal Money Market. FDIC insured is only $250k (I think).


If I transfer $150k to the regular money market in the same account am I covered FDIC for the entire $400K?



Thanks,


Wally

 

[oldtimer]

It is my understanding that money market funds are not FDIC insured.

 

[RockyMtn]

money market mutual funds are not insured. Money market accounts offered by banks or credit unions are insured up to $250k

https://www.fdic.gov/consumers/consumer/information/fdiciorn.html

 

[mystang52]

FDIC is an agency of Uncle Sam. OP says his account is a Federal a money market account, which I presume means just Federal obligations. So wouldn't they be backed by full faith and credit of Uncle Sam anyway ( i.e., even though not backed by FDIC)?

 

[njhowie]

FDIC is an agency of Uncle Sam. OP says his account is a Federal a money market account, which I presume means just Federal obligations. So wouldn't they be backed by full faith and credit of Uncle Sam anyway ( i.e., even though not backed by FDIC)?

The securities held by the money market fund are backed by the full faith and credit of Uncle Sam.

However, the funds in the money market mutual fund held at/by Vanguard are not protected. That falls under SIPC and any additional insurance which Vanguard carries.