- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Can some explain Vaguard’s Cash Deposit to me like I’m 5?
Posted on 12/8/22 at 12:59 am
Posted on 12/8/22 at 12:59 am
What are the pros and cons of it vs. the Money Market fund? Does it move funds in and out just as instantaneously when used to purchase funds? Anything different for taxes or needing to hold funds for certain periods of time?
I don’t understand all the bank sweeps and everything. And there’s only like 6 participating banks in the program so far...? Is that just who is carrying the FDIC or do you have to like have some sort of standing with a participating bank?
The 2.6% has me interested
I don’t understand all the bank sweeps and everything. And there’s only like 6 participating banks in the program so far...? Is that just who is carrying the FDIC or do you have to like have some sort of standing with a participating bank?
The 2.6% has me interested
2
Posted on 12/8/22 at 1:13 am to Zzyzx
I was in Vanguard’s federal money market fund until they desolved it in 2020 when interest rates bottomed out. It’s a very safe, no risk fund that you can use to park cash and earn interest slightly above a passbook savings account. I haven’t even looked at their money market funds since Vanguard basically ended those funds back in 2020, so it’s nice to see that the funds are back to paying good rates again. One positive of higher interest rates I suppose.
Vanguard also uses one of their money market funds (I think its the federal money market fund) as a temporary clearinghouse in your brokerage account when you purchase a fund. I think you alluded to this in your question.
Vanguard also uses one of their money market funds (I think its the federal money market fund) as a temporary clearinghouse in your brokerage account when you purchase a fund. I think you alluded to this in your question.
This post was edited on 12/8/22 at 1:16 am
Posted on 12/8/22 at 7:23 am to Zzyzx
It’s how they keep the cash FDIC insured. The money market option, while incredibly safe, isn’t protected by the FDIC.
Ultimately you can move the money as fast as any other option. You’ll pay taxes on the interest income just as you would on the mmkt.
Ultimately you can move the money as fast as any other option. You’ll pay taxes on the interest income just as you would on the mmkt.
Posted on 12/8/22 at 7:49 am to Riverside
quote:
Vanguard also uses one of their money market funds (I think its the federal money market fund) as a temporary clearinghouse in your brokerage account when you purchase a fund. I think you alluded to this in your question.
Right, the clearing house (Vanguard calls it "Settlement") fund is the Vanguard Federal Money Market Fund (VMFXX).
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News