Vanguard MMF as savings account

[sweeps]

Hi, who all is using the Vanguard MMF for their savings account? I think it may be time to kiss my long-time friend GMAC goodbye, and I don't really feel like going to another one of these other online banks just to have them pull the rug out on the interest rate.

Have you found any drawbacks to using Vanguard's MMF? How fast are the ACH transfers? Do you get free checks or do you have to pay for them? How often does interest get credited? Thanks in advance.

[Thrif-t]

I use the Vanguard Prime Money Market fund as my emergency account. They give me free checks but I can't write them for under $250. I try not to use it all that often so I can't answer your questions on timing. I do have them automatically take money out of my checking account every month and transfer into their fund. I believe the interest/dividened is added to my account on the last work day of the month. I've never had any problems and I've had this account for 15 years.

[Broken Arrow]

Hmm, I've been mulling over this option as well....

Not right now, but eventually when I have to rollover my 401k into an IRA... then a MMF could help defray brokerage fees and keep my finances under one roof.

Of course, they're not FDIC insured, and the rates isn't necessarily better. That or Schwab offers a checking account, but I know you know all that already.

For now, I'm still happy with online savings account. I'm not ready to take it to the next level yet; all in good time.

[marvholly]

Pulled most of my MMA dollars out of GMAC last Tue and moved to a local bank that I also have an MMA account with. Difference in APY was about 0.37%. I am a bit of a rate chaser (teller at local bank remarked on this a few weeks ago as I had been closing CDs there for better rates and then opened one).

However, the convience of a bank being local is worth at least 0.1% and maybe up to 0.25%. That is the reason I had kept the local MMA and I still have $ in GMAC as their checks are free and I have 2 large bills to pay before the end of the year.

[Ima saver]

I pened a vanguard MMfund a month or so ago. They are paying a better rate than I can get locally. I am putting the surplus that I have in local banks above the $100,000 that is fdic insured. They pay interest the last day of the month.
They are not fdic insured but they are so big, I am not worried about that.

[Aleta]

I have a Vanguard Money Market Fund. Free checks, but can only be written for at least $250.00. It has been a while since I transferred money into my local account, but I think that it is two days. To have them transfer money out of your account; it needs to be at least $100.

Right now their rate is 4.83 as of Friday. I'm like another poster, I received a promotional offer until March 2008 of 4.50 interest rate and 4.60APY. At this point, I don't think the extra .23 is worth me moving anything to Vanguard now. Also, my local bank is FDIC insured and Vanguard isn't.

[humandraydel]

I'm actually considering GE (General Electric) Short Term Corporate Notes. They offer a 5.01% APY for balances above $15k and 5.17% APY for balances above $50k. Info can be found at www.geinterestplus.com . It's very similar to a MMF. Unlimited checks over $250 and free transfers.