Hello,
I have an emergency fund that I am currently not earning a ton of interest on. I need this money to be liquid, so investing into stocks is not my best option currently. I have a credit union and put 4K of the fund into a MMA (Money Market Savings Account) this is earning .20% APY and dividends, while keeping some in general savings.
I notice Vanguard has a Money Market Fund that is paying ~1.83 APY so substantially higher then what I am currently getting. My money in the credit union is covered up to 250K, which is a nice relief. Is it worth forgoing this safety net to earn higher interest? Does a money market really have the chance to fall below a dollar?
Side note: I know there are high interest savings accounts out there, (Ally, Marcus etc.) earning 1.6 APY. Is this better than a money market?
Submitted May 08, 2018 at 05:37AM by fatherswine https://ift.tt/2wlIf7H
