need to place to park 250k - Ally Savings or Vanguard Money Market Account (VMFXX)?

[Anonymous]

Where would you park your cash between above two choices? TIA

[Anonymous]

Money market funds can not compete with High Yield savings accounts like Ally at this time. So Ally.

You may even consider locking in ~%1 with an Ally CD, since bank account rates are likely to keep sliding (high yield accounts dipped to ~.75% during the Great Recession). But CD vs High Yield Savings not a big distinction at this point.

[Anonymous]

I parked $500K in a high yield savings acct at capital one. Boring but a good place to be

[Anonymous]

Anonymous wrote:I parked $500K in a high yield savings acct at capital one. Boring but a good place to be

What % are you getting?

[Anonymous]

Anonymous wrote:Where would you park your cash between above two choices? TIA

TSLA or AMZN

[Anonymous]

Anonymous wrote:Money market funds can not compete with High Yield savings accounts like Ally at this time. So Ally.

You may even consider locking in ~%1 with an Ally CD, since bank account rates are likely to keep sliding (high yield accounts dipped to ~.75% during the Great Recession). But CD vs High Yield Savings not a big distinction at this point.

VMFXX has 1 yr return of 1.39. Higher than Ally?

https://institutional.vanguard.com/web/cfv/product-details/fund/0033

[Anonymous]

Anonymous wrote:

Anonymous wrote:Money market funds can not compete with High Yield savings accounts like Ally at this time. So Ally.

You may even consider locking in ~%1 with an Ally CD, since bank account rates are likely to keep sliding (high yield accounts dipped to ~.75% during the Great Recession). But CD vs High Yield Savings not a big distinction at this point.

VMFXX has 1 yr return of 1.39. Higher than Ally?

https://institutional.vanguard.com/web/cfv/product-details/fund/0033

That would be how much it returned in the last year, during most of which rates were much higher. What you’re looking for is the current effective rate: the SEC yield.

SEC YIELD
0.12% C
7 day as of 07/02/2020

[Anonymous]

We use Ally

[Anonymous]

Anonymous wrote:

Anonymous wrote:I parked $500K in a high yield savings acct at capital one. Boring but a good place to be

What % are you getting?

It *was* like 2% ... it’s now 0.80%

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I parked $500K in a high yield savings acct at capital one. Boring but a good place to be

What % are you getting?

It *was* like 2% ... it’s now 0.80%

Move to Ally. 1.1% isn't much but better than .8

[Anonymous]

Anonymous wrote:I parked $500K in a high yield savings acct at capital one. Boring but a good place to be

I thought it was customary to limit a single account to 250k (deposit insurance limit) and instead open a second account?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I parked $500K in a high yield savings acct at capital one. Boring but a good place to be

I thought it was customary to limit a single account to 250k (deposit insurance limit) and instead open a second account?

Not PP, but it’s 250k per person per banking institution per account type. So a husband/wife can have two independently owned accounts totaling $500k or a single joint account with $500k, or both and keep $1 million total across 3 accounts. Still, not a whole lot of people dumping that much money into a savings account.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I parked $500K in a high yield savings acct at capital one. Boring but a good place to be

What % are you getting?

It *was* like 2% ... it’s now 0.80%

Move to Ally. 1.1% isn't much but better than .8

40% better

[Anonymous]

Anonymous wrote:

Anonymous wrote:Where would you park your cash between above two choices? TIA

TSLA or AMZN

this

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Where would you park your cash between above two choices? TIA

TSLA or AMZN

this

PP here.
If you put your money in 50/50 those two stocks when I advised, you would be up 11% now.
Not too late.