Highest interest savings account

[ShimshonK]

Anyone here use their brokerage money market in place of a HYSA?

Vanguard's money market funds as of 01/13/2023:
VUSXX Compound yield - 4.23%
VMFXX (default settlement fund) Compound yield - 4.34%

As opposed to the Discover/Ally/Amex/etc. (reputable online HYSAs) 3.3-3.35%

[nucheiner]

Anyone here use their brokerage money market in place of a HYSA?

Vanguard's money market funds as of 01/13/2023:
VUSXX Compound yield - 4.23%
VMFXX (default settlement fund) Compound yield - 4.34%

As opposed to the Discover/Ally/Amex/etc. (reputable online HYSAs) 3.3-3.35%

Are these in fact zero risk? How do these funds operate and maintain fixed value?

[ShimshonK]

Are these in fact zero risk? How do these funds operate and maintain fixed value?

I'd say not the same zero risk as an FDIC bank account, but pretty darn close to it. Interested to hear others' takes on that though. I think VUSXX might be a tad less 'risk', hence why I mentioned it even though the default cash is stored in VMFXX.

[ShimshonK]

How do these funds operate and maintain fixed value?

https://investor.vanguard.com/investment-products/mutual-funds/profile/vusxx
"Vanguard Treasury Money Market Fund, which invests primarily in U.S. Treasury securities, seeks to provide current income and preserve shareholders’ principal investment by maintaining a share price of $1. This fund at a minimum invests 80% of the assets in debt issued directly by the government in the form of Treasury bills and may invest in other securities including, but not limited to debt issued by federal agencies that are sponsored, guaranteed, or owned by the federal government. As a government money market fund, this fund is required to invest at least 99.5% of its total assets in cash, U.S. government securities, and/or repurchase agreements that are collateralized solely by U.S. government securities or cash (collectively, government securities)."

https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx
"Vanguard Federal Money Market Fund’s investment objective is to seek to provide current income while maintaining liquidity and a stable share price of $1. The fund invests at least 99.5% of its total assets in cash, U.S. government securities, and/or repurchase agreements that are collateralized solely by U.S. government securities or cash (collectively, government securities)."

[Izzzy]

Anything similar to vusx that can be bought on TD Ameritrade?

[ShimshonK]

Anything similar to vusx that can be bought on TD Ameritrade?

I assume you meant VUSXX (and not VXUS).
Not entirely sure, but looks like SNOXX and SNSXX are similar.
https://research.tdameritrade.com/grid/public/mutualfunds/profile/profile.asp?symbol=SNOXX
https://research.tdameritrade.com/grid/public/mutualfunds/profile/profile.asp?symbol=SNSXX

[CountValentine]

Short term t-bills still giving nice returns.
13 week - 4.6773
26 week - 4.8652

[nucheiner]

Short term t-bills still giving nice returns.
13 week - 4.6773
26 week - 4.8652

Where do you see these rates and how did you get them? Seeing secondary market on Fidelity at 4.7 and 4.75 for 3m and 6m. And new issues for 5/23/2023 at 4.653

[CountValentine]

Where do you see these rates and how did you get them? Seeing secondary market on Fidelity at 4.7 and 4.75 for 3m and 6m. And new issues for 5/23/2023 at 4.653

Bought today at action. Click on 13 or 26 week to see the rate. You receive the investment rate.
https://www.treasurydirect.gov/auctions/announcements-data-results/announcement-results-press-releases/auction-results/

Action schedule: https://home.treasury.gov/system/files/221/Tentative-Auction-Schedule.pdf
 

[Dan]

Bought today at action. Click on 13 or 26 week to see the rate. You receive the investment rate.
https://www.treasurydirect.gov/auctions/announcements-data-results/announcement-results-press-releases/auction-results/

Action schedule: https://home.treasury.gov/system/files/221/Tentative-Auction-Schedule.pdf
 

How did you know what the rate would be?

[CountValentine]

How did you know what the rate would be?

You don't know the exact rate but get an idea from the secondary market.
ETA: 26 week bought today (4.86%) matures on 7/20/23. On the secondary market a mature date of 7/13/23 is yielding 4.73%.

[Shauly101]

any reason you are doing only 13 /26 ?

these seem much closer?



(for the record - transfer availability sucks)

[CountValentine]

any reason you are doing only 13 /26 ?

these seem much closer?

I am staying short term until I see a definitive downturn in rates. 13/26 weeks currently give better rates than 4/8 weeks.

[sam2015]

I am staying short term until I see a definitive downturn in rates. 13/26 weeks currently give better rates than 4/8 weeks.

What do you consider a ‘definitive downturn’? Rates are significantly lower than they were at the height in November. The 5year treasury topped out at 4.5, it is now down significantly at only 3.45. Similar story with the 10year - was 4.33 now only 3.37.

[CountValentine]

What do you consider a ‘definitive downturn’? Rates are significantly lower than they were at the height in November. The 5year treasury topped out at 4.5, it is now down significantly at only 3.45. Similar story with the 10year - was 4.33 now only 3.37.

These are liquid funds so not looking 5-10 years out. Once short-term rates drop to the 4-4.25 range I might go with one year t-bills or look to get back into stocks.

[Izzzy]

I assume you meant VUSXX (and not VXUS).
Not entirely sure, but looks like SNOXX and SNSXX are similar.
https://research.tdameritrade.com/grid/public/mutualfunds/profile/profile.asp?symbol=SNOXX
https://research.tdameritrade.com/grid/public/mutualfunds/profile/profile.asp?symbol=SNSXX

Thanks. Was a diffrence of 0.29% between the two

[sillypainter]

And now 4%!

And now 4.15% I'm in love with Robinhood. They lead the game.

[dm123]

I found this post and it says you have to call Chase. I would call them anyway and they should be able to walk you through it.
https://www.bogleheads.org/forum/viewtopic.php?t=382583

Another DP - I was just told by a JP Morgan Rep that a self directed can't purchase short term treasury bonds online.

buying bonds over the phone might have transaction fees

Not sure how up to date this is but found this (I should've asked the rep about phone fees...):

This schedule applies to Self-Directed Investing Accounts. Please note that fees and other information are subject to change.

U.S. FIXED INCOME4   $30.00/trade + $1.00 per bond over 10 bonds ($270 maximum)

4 Fixed income includes U.S. Treasury bills, notes and bonds, agency discounts, municipal and corporate bonds (including zero coupon bonds) and brokered certificates of deposit. Commission for U.S. Treasury bills, notes and bonds is $0 per bond. There is no commission for new issue CDs, but the offering price includes a selling concession. Rates are for U.S. Dollar denominated bonds. Additional fees and minimums apply for non-Dollar bond trades. Please call the Self-Directed Investing team about specialty products, including commercial paper and foreign bonds.

https://www.jpmorgan.com/wealth-management/wealth-partners/legal/sdi-fee-and-commission-schedule

[dm123]

And now 4.15% I'm in love with Robinhood. They lead the game.

I guess it depends on how much you have and what other benefits of Robinhood gold you use, but if used exclusively for HYSA does the $5/monthly fee means you'd need about $1,450 (1450 X .0415 / 12 = $5) to cover the fee and about double that to beat a no fee 4% savings?

[yungermanchik]

For banks with B&M branches Capital One 3.4% is the best, correct?