looks like you can go with vanguard…
https://www.bogleheads.org/forum/viewtopic.php?t=141211
WCI just posted that his is invested in Vanguard Tax-Exempt MMF. https://www.whitecoatinvestor.com/are-emergency-funds-for-the-weak-minded/
Could you just open an account at a local bank? We keep our EF in a bank MMF linked to our checking account. The extra I could get by moving it online is not meaningful to us. We live in an area where power loss and internet loss concern me as they limit my ability to access online funds. I can move money between the accounts immediately so no worries about timeframe of fund availability.
Could you just open an account at a local bank? We keep our EF in a bank MMF linked to our checking account. The extra I could get by moving it online is not meaningful to us. We live in an area where power loss and internet loss concern me as they limit my ability to access online funds. I can move money between the accounts immediately so no worries about timeframe of fund availability.
great that you get a good rate at the local bank. we are about to move our EF to an online bank (with 1%) because our bank rate is so low. Stinks because it is a nice piece of mind to know that in an emergency we could just walk into the local branch and ask for our money out.
Could you just open an account at a local bank? We keep our EF in a bank MMF linked to our checking account. The extra I could get by moving it online is not meaningful to us. We live in an area where power loss and internet loss concern me as they limit my ability to access online funds. I can move money between the accounts immediately so no worries about timeframe of fund availability.
If you have a SSN you can bypass the banking system and just buy Tbills direct from the government. 6mo paper gets you over 1% now. This way you have no counterparty bail-in risk be it the bank or the FDIC. All you have is currency risk.
https://www.treasurydirect.gov/RS/UN-AccountCreate.do
Ally has exposure to subprime auto. CapOne360 probably the same. Stay away. Definitely not worth a crummy 1%.
Stay away from Money Market Funds even Vanguard. The gates will go up on these puppies during a crisis. This is what regulators have been prepping for by stipulating these funds have more sov debt as opposed to commercial paper. Problem is, commercial debt may actually be safer at least for awhile. It’s sov debt that will default with the next crisis.
Oh let me tell you a story about getting your money out of the bank. Don’t count on any quick transfers even if there is no crisis. I once had a measly 40K EBT that HSBC didn’t want to let go. It took a while, but I had raise ************************ to get it thru. You see what you think is your money really isn’t your asset as much it is a bank’s liability. A bank depositor is an unsecured creditor.
One thing to always keep an eye on are the transaction limit for external bank transfers. There didn’t used to be such things unless over 100K, but since 2008 some banks/credit unions won’t let you transfer more than 5k per day or 30K per month and this is when the system is calm. Imagine what’s going to happen if interbank lending freezes up? Gates are up. You might only be allowed a 1000 dollars per month. So think twice before socking away a pretty penny in a single institution.
Could you just open an account at a local bank? We keep our EF in a bank MMF linked to our checking account. The extra I could get by moving it online is not meaningful to us. We live in an area where power loss and internet loss concern me as they limit my ability to access online funds. I can move money between the accounts immediately so no worries about timeframe of fund availability.
I could, but that would earn me almost nothing. I have a checking account with a major bank and could just open up a savings account, I suppose.
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