|
|
Post by chang on Oct 19, 2023 19:07:49 GMT
|
|
|
|
Post by yogibearbull on Oct 19, 2023 19:23:20 GMT
|
|
|
|
Post by retiredat48 on Oct 20, 2023 2:19:46 GMT
It's good to know in a REAL CRISIS that one could park money here, for as long as they want, and have FDIC Insurance.
During 2008 bank crisis I parked money from MMF into bank accounts at Fido tie in (or was it vang'd?) that had bank accounts available that earned 0% interest, but had FDIC insurance.
R48
|
|
|
|
Post by bizman on Oct 20, 2023 2:27:58 GMT
It's good to know in a REAL CRISIS that one could park money here, for as long as they want, and have FDIC Insurance. During 2008 bank crisis I parked money from MMF into bank accounts at Fido tie in (or was it vang'd?) that had bank accounts available that earned 0% interest, but had FDIC insurance. R48 If I had had access to this I might have used it in the runup to the June 1, 2023, brinksmanship where some of the pirates almost tried to push a debt default with the idea that would fix our spending addictions (logic is not their strong suit). I did move some of my cash to a local FDIC insured bank at that time that didn't pay as well as Vanguard's current program, with the idea that with a debt default even Vanguard's Federal MM Fund could have had at least short term problems. But let's face it, if the pyros are determined to burn everything to the ground, they may well eventually succeed. Let's hope not though. I remember WFB saying that despair is a mortal sin, and that has always stuck with me. |
|
|
|
Post by roi2020 on Oct 20, 2023 4:02:04 GMT
I received the same email ~1 week ago.
Outside of Armagedden, it's highly unlikely that Vanguard will allow VMFXX or VMRXX to "break the buck" so I'm not concerned about FDIC insurance.
The current yield for Vanguard Cash Deposit is not appealing vis-a-vis VMFXX or VMRXX.
|
|
|
|
Post by retiredat48 on Oct 20, 2023 15:31:44 GMT
roi2020 ,....who posted: "I received the same email ~1 week ago. Outside of Armagedden, it's highly unlikely that Vanguard will allow VMFXX or VMRXX to "break the buck" so I'm not concerned about FDIC insurance. The current yield for Vanguard Cash Deposit is not appealing vis-a-vis VMFXX or VMRXX." ----------------------------- That's an interesting proposition. I suspect Vanguard would let a MMF "break-the-buck" and go to $0.99. They are a non-profit, and the loss would have to be shared among all shareholders. Seems the bondholders should absorb this. Fidelity may be a different story. As a strategy, one would know when massive defaults loom or are underway, to potentially evolve into breaking the buck, and could act then to FDIC covered situations. Also, this is only a 1% loss, so one could take action following such a 1% decline, and not be greatly harmed. R48
|
|
|
|
Post by archer on Oct 20, 2023 16:28:16 GMT
I'm amazed that banks can stay in business with paying .01% interest, and service charges based on minimum balance. I bank with Chase where I have a checking account, jt checking with ex, and my one and only credit card. Checking has a min balance of $15K, below which charges $24/month, and is paying only .01% I guess they are able to do this because there are enough people like me who are too busy and too lazy to start over with a better option and spend the time to change all our automatic payments. It wasn't an issue when brokerages were paying low interest rates a couple years ago. For some reason the banks haven't brought up their rates. At least not Chase.
|
|
|
|
Post by anitya on Oct 20, 2023 18:31:32 GMT
archer, FYI - Chase has a checking account with $1,500 minimum balance and no fees and if you are interested and available in your location, you can simply call to downgrade, without having to open a new account.
|
|
|
|
Post by archer on Oct 20, 2023 19:48:09 GMT
archer , FYI - Chase has a checking account with $1,500 minimum balance and no fees and if you are interested and available in your location, you can simply call to downgrade, without having to open a new account. Thanks Anita. I did give them a call after I posted just to see what was up with the interest rates. The agent I spoke with told me there wasn't anything that she could do over the phone as far as changing the terms, but, if I went into a branch they would likely be able to give me a better deal. I really don't mind the minimum balance, but if they can't offer better rates, then a low minimum balance would be fine. I don't mind zero interest on a small balance. I see online the account you are referring to. It also avoids fees via direct deposits exceeding $500 which would apply to me as well. I am guessing that will be their solution rather than matching Fido's interest rates. I've banked with Chase for 0ver 30 years counting their acquisitions of my local bank. Their customer service has been good other than trying to sell me things that weren't in my best interest. |
|
|
|
Post by retiredat48 on Oct 20, 2023 22:42:24 GMT
I have a 55 yr old checking account, with a free $5000 overdraft privilege; i run my balance near zero! No cost no fees, but have to keep $500 in a savings account at miniscule interest.
BTW Schwab roboadvisor accounts keep cash monies in a bank acct at close to zero interest, instead of MM Funds.
I just did a portfolio review of a 86 yo lady in my golf course community (who has a (Schwab-based) financial advisor from my same community) who had $75,000 portfolio with $15,000 cash earning nothing. $750 a year kissed away. And about an $1100 a year advisor fee!
R48
|
|
