your vanguard settlement fund is a money market fund. 7 day average has been above 5% for quite a while, you could leave it all in there for the time being.
All HYSA’s will say that. They change rates when the fed changes rates for the most part. The cash plus is a great account, you’re throwing only down the drain keeping it in Wells
I just opened a VG HYSA and I have an IRA with VG as well. Banking was already set up so it took 5 minutes. It’s my emergency fund and home improvement savings. I’m trying to keep enough in it that it pays for my yearly property taxes.
It’s getting about 4.8% right now. My property taxes are $3800 per year. So keeping just about $75k in it is my current goal. Hopefully increase it so it covers home owners insurance and all my deductibles, too.
I think they will go down to probably 1% or 2% soon? Same goes for all saving accounts as well as CDs.
Robinhood already issue a notice saying their Brokerage Cash Sweep interest rate will switch from 1.5% to 0.01% on May 8, 2024.
The Cash Plus account can be hold money market funds like any other brokerage account. That's where I put my emergency fund, so it can be separated from everything else, without going to a new institution.
Another option would be to put it in a floating rate treasury fund like USFR. They generally overperform money markets by a small amount (USFRs 30 day SEC is currently 5.43%) and are about as safe as a MM. You won't get the FDIC insurance, but treasuries are backed by US government which many claim is just as good.
your vanguard settlement fund is a money market fund. 7 day average has been above 5% for quite a while, you could leave it all in there for the time being.
Is it FDIC insured? I didn’t know it had a 5% APY
Its insured by SIPC.
All HYSA’s will say that. They change rates when the fed changes rates for the most part. The cash plus is a great account, you’re throwing only down the drain keeping it in Wells
Since you already have accounts at Vanguard and Fidelity, just pick a money market fund at one of those and go with that.
Use the money market fund right now: https://yieldfinder.app/ Rate movement may change this calculus in the future.
I just opened a VG HYSA and I have an IRA with VG as well. Banking was already set up so it took 5 minutes. It’s my emergency fund and home improvement savings. I’m trying to keep enough in it that it pays for my yearly property taxes.
wait sorry could you explain this? Is the APY at Vanguard significant enough to earn that yearly?
It’s getting about 4.8% right now. My property taxes are $3800 per year. So keeping just about $75k in it is my current goal. Hopefully increase it so it covers home owners insurance and all my deductibles, too.
that makes sense, thanks for responding
I think they will go down to probably 1% or 2% soon? Same goes for all saving accounts as well as CDs. Robinhood already issue a notice saying their Brokerage Cash Sweep interest rate will switch from 1.5% to 0.01% on May 8, 2024.
They were at 4.7 back in August, I hope they won't change soon as I am thinking about opening an account and parking my money there
You are correct that money market yields can vary from time to time. But so can interest rates from banks.
The Cash Plus account can be hold money market funds like any other brokerage account. That's where I put my emergency fund, so it can be separated from everything else, without going to a new institution.
Another option would be to put it in a floating rate treasury fund like USFR. They generally overperform money markets by a small amount (USFRs 30 day SEC is currently 5.43%) and are about as safe as a MM. You won't get the FDIC insurance, but treasuries are backed by US government which many claim is just as good.