Looking for opinions: For the last several years I have kept +/- six months of living expenses in HYS and T-bills, HYS is for instant accessibility needs and the T-bills are for slightly longer or larger needs. It looks like Vanguard's VMFXX sweep account and Cash Plus account both pay a higher interest rate than most HYS so I'm thinking of moving my HYS to one of these. Any thoughts on this? Looks like VMFXX pays slightly more but the Cash Plus account is FDIC insured. Is there anything I am missing?
Where should I park emergency fund cash (that isn't in T-bills)?
byu/Buck_98 ininvesting
Posted by Buck_98
2 Comments
FDIC insurance means that the federal government will make you whole if the bank goes under. VMFXX buys T-bills that are directly issued by the federal government. If Vanguard goes broke, then you stil have the right to get the underlying T-bills, which are issued by the United States government. In terms of safety, both are identical since both are backed by the federal government.
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