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Vanguard Federal Money Market Fund -1.35% 7 Day Yield

RichL40T
  |     |   13 posts since 2014

For the first time in MANY years, Vanguard money market funds pay higher rates than most bank savings accounts. The higher wholesale money market rates reflect quickly in the Vanguard fund, as the rates they get are passed along. Bank posted rates can stay low if a bank sees their customer base as inattentive, and they want to increase profit margins.

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8


Sperry8
  |     |   300 posts since 2011
Exactly what I saw a few days ago when it was at 1.27%. I've begun the process of pulling my money back from myriad banks and putting it all into Vanguard. It's higher than most and even where it falls short its slight, so I'll just keep it all in one spot for simplicities sake.
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4
Blade
  |     |   48 posts since 2018
Nice! It was just at 1.27% last night. Great to see Vanguard moving up at a steady pace! Saves me the trouble of linking more banks and chasing yields elsewhere as I continue to watch CD rates rise.
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3
Ltssharon
  |     |   393 posts since 2020
Hold on please. Money Market mutual funds are not FDIC insured as far as I can tell. I think the vanguard federal Money Market Fund would be a mutual fund.
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7
RZ
  |     |   271 posts since 2017
Funds holds primarily government issued securities. Risk is minimal and if there is a catastrophic economic collapse I would have little faith that FDIC would be solvent enough to bail me out anyway.
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4
P_D
  |     |   963 posts since 2020
FDIC will always be able to pay you back the nominal dollars for which you are insured. The government cannot allow it to default.
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4
Sperry8
  |     |   300 posts since 2011
Up to 1.92% now. Simply a great place to keep all your money. Not worth the pennies to chase for online FDIC banks, most of whom aren't higher APY than Vanguard anyway.
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4
jack12
  |     |   287 posts since 2021
Fidelities are slightly lower 1.42% for SPAXX and 1.68% for SPRXX

But the lower yield one is the standard- you have to specifically buy SPRXX to get the higher rate
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3
Ltssharon
  |     |   393 posts since 2020
Does anyone know of a schwab fund with approximately the same holdings as the vanguard federal money market account? I guess I will need to call schwab, but if you have any ideas, that would be helpful. I'll let you all know what I find out as per schwab. By the way, remember it ALWAYS takes overnight to get your money out of a fund. So, just in case you are thinking of using such money to try to time buying stocks, then funds might not be your cup of tea. Thank you.
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2
buckeye61
  |     |   449 posts since 2011
I use SWVXX in my Schwab account, and Its currently yielding 1.83%, just a little below Vanguard.
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4
RichardW
  |     |   494 posts since 2019
As of today, the Vanguard Federal Money Market Fund (VMFXX) has a 7-day SEC yield of 2.00%.
https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx
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5
RichardW
  |     |   494 posts since 2019
Here are a few money market fund yields as of 8-5-2022: VMFXX @ 2.10%, VMRXX @ 2.10%, SPRXX @ 2.00%, and SPAXX @ 1.69%.
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6
RZ
  |     |   271 posts since 2017
Transferred all of my bank accounts yielding less than 2.0% to VMFXX and placed a buy order for the upcoming 6 Mo T Bill auction which I expect to yield around 3%. Far less of a hassle than chasing after leapfrogging bank rates at this time.
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3
jack12
  |     |   287 posts since 2021
I have no need for AA when fidelity pays more and does not limit me to 6 per month
Just wish i did not have to buy SPRXX every time I get a dividend or transfer money in
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2
GH1
  |     |   976 posts since 2017
Thank you!!!!!!!!!!
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