Comments on: Money-Market Funds May not Be As Safe As You Think

By: Andy

Andy — Thu, 25 Sep 2008 20:45:19 +0000

I decided today that I wanted to fully protect my cash funds and as a result have decided to move them from my Vanguard prime money market account to my online ING Direct savings account. Why? because first money market accounts at Vanguard, Fidelity and other large cap institutions are for the most part not FDIC insured and in these bizarre financial times even the most well know institutions can collapse and leave depositors with pennies in the dollar. Secondly, and as importantly from an investments perspective the yields on money market accounts have dropped so low because of tightening credit that Vanguard’s money market fund (an industry leader) is now only paying a 2.25% APY (was 3.5% just a few months ago), whereas at ING Direct (see review) I can get 3% and even more at HSBC. So even taking out the FDIC insurance argument, as a straight investment decision on-line savings accounts are a better investment than most money market funds at the current time.

By: Learn More About the World

Learn More About the World — Wed, 24 Sep 2008 04:08:03 +0000

[...] Money-market funds may not be as safe as we thought. [...]

By: Links - Looks can be Deceiving Edition

Links - Looks can be Deceiving Edition — Tue, 23 Sep 2008 01:29:10 +0000

[...] Money-market funds may not be as safe as you think says the Sun’s Financial Times. What do you think? [...]

By: Keep My Money Safe and Let It Grow

Keep My Money Safe and Let It Grow — Mon, 22 Sep 2008 17:57:18 +0000

[...] environment has changed a lot in one year. What seen as safe investments (such as money-market funds) are not as safe now as they used to be. With all the uncertainties around us, we want to safeguard [...]

By: Weekly Roundup – Blog Carnival of Personal Finance | Own The Dollar

Weekly Roundup – Blog Carnival of Personal Finance | Own The Dollar — Mon, 22 Sep 2008 17:29:06 +0000

[...] Money-Market Funds May not Be As Safe As You Think [...]

By: Friday Finance Findings for September 19th - Arrrrr! Ye Pirate Edition : Generation X Finance

Fri, 19 Sep 2008 14:53:40 +0000

[...] Money-Market Funds May not Be As Safe As You Think -Money market funds have generally been thought of as safe, but recently a major fund saw a deviation from the $1 per share standard. Learn more about money market funds and what risks they may have. [...]

By: U.S. Treasury to Guarantee Money-Market Funds

U.S. Treasury to Guarantee Money-Market Funds — Fri, 19 Sep 2008 13:15:19 +0000

[...] Funds Posted by Sun on September 19, 2008 Visited 1 times Yesterday, I talked about why money-market funds may not be as safe as you think, after The Reserve Primary Fund cut the NAV of the fund from $1 to 97 cents. Even though money in [...]

By: SunFinancial (SunFinancial)

SunFinancial (SunFinancial) — Fri, 19 Sep 2008 08:56:33 +0000

Money-Market Funds May not Be As Safe As You Think http://tinyurl.com/3qu9cy