Anyone moving money from savings acct to money market acct?

[shaynaatl]

We have been using the high yield savings acct from Capital One (formerly ING Direct) for many years. However, I see that Money market accts are gaining more interest. For example, one of the Vanguard MM funds is earning 5.27% right now.

However, the larger benefit for this specific fund is that a large portion of the interest is not subject to state taxes. Last year, it was apparently 80% which was exempt (the % varies by year). So it sounds like this could be a very nice option if you live in a high-tax state.

One con is that the money is insured by SPIC, not FDIC.

Here is the Vanguard fund as an example:

advisors.vanguard.com/investments/products/vusxx/vanguard-treasury-money-market-fund#overview

[whitemerlot]

I’m wondering about this exact thing. I’m not sure if it worth the trouble to move money from a high yield saving for about 1% per year.

[shaynaatl]

May 13, 2024 21:47:08 GMT -5 whitemerlot said:

I’m wondering about this exact thing. I’m not sure if it worth the trouble to move money from a high yield saving for about 1% per year.

We've decided it's not worth the hassle. We are staying put with Capital One savings.

[fortnightlily]

I have a lot of our money under our revocable living trusts, and opening accounts under those isn't as easy as just opening an account online, so I don't move money unless the interest rate difference is compelling enough to do all the paperwork .