Had to choose between my bank's 0.5% savings rate and a brokerage money market paying 4.2% last month

I was parking my emergency fund at Chase getting basically nothing (0.5% APY is a joke, right?). Found out I could open a Vanguard settlement account and get 4.2% on the same cash with zero extra risk. My bank guy tried to tell me money market funds aren't FDIC insured, but SIPC covers up to $500k. I moved $15k over and made an extra $46 in one month just on interest. Who else has jumped ship from a bank savings account to a broker settlement fund?

3 comments

3 Comments

grayperez27d ago

Money market funds are basically giving free money with that yield difference.

kelly.emma27d ago

Wait, you mean that kind of money is just sitting there?

the_ben13d ago

Jumped on that myself a few months ago, wish I'd done it sooner. Seeing that extra cash hit my account every month is wild.