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Money Market account

I keep a portion of my money in Vanguard PRIME Money Market. The fund never pays the highest rates but with its $50+ billion in assets you have lots of company. The current yield is around 5.10%.
 
Originally posted by: Cattlegod
I'm getting 5.9% through fordcredit.com, not a money market, but close enough.
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They have investment accounts? I only thought they loaned money........

I have a CD coming do and need a good rate. Best CD rate I've found is 5.4%.


 
Originally posted by: Fmr12B
Originally posted by: Cattlegod
I'm getting 5.9% through fordcredit.com, not a money market, but close enough.
Click to expand...

They have investment accounts? I only thought they loaned money........

I have a CD coming do and need a good rate. Best CD rate I've found is 5.4%.
Click to expand...

yeah, you need a min 1k in there or you get charged a monthly fee or something, you have to open a note. you can write free checks for 250+ bucks. completely liquid account, you can close it any time. Only thing is it isn't FDIC insured, but big whoop.
 
Originally posted by: Ilikepiedoyou
is being fdic insured important?
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I think so, although some people would disagree with me. I'm fairly sure that Money Market accounts aren't FDIC insured anyway (even if the issuing bank is). It's not something a fly by night bank would obtain easily, so it'd make me feel better about keeping my money with a bank that was insured.
 
etrade is offering 5.05%, which is the highest no-minimum, household-name, non-evil-company rate i've found. i think HSBC has the same rate, but i had an absolutely dreadful experience with them when i tried to sign up for it and would recommend everyone stay clear of HSBC. my e-trade account was by far the least painful sign-up process i have ever been through, including ING and Captial One.
 
Originally posted by: Ilikepiedoyou
Originally posted by: jakedeez
Originally posted by: Cattlegod
I'm getting 5.9% through fordcredit.com, not a money market, but close enough.
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Ford Credit is the same as a money market? What are you smoking man?
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care to elaborate?
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I'll elaborate for him:

Ford Interest Advantage is a program under which you can invest in unsecured senior debt obligations of Ford Motor Credit Company, which are presently rated below investment grade by major credit rating agencies. It is not a money market mutual fund or a bank account and is not protected by the Federal Deposit Insurance Corporation or any other insurance. Since all funds are invested in the security of a single issuer, investors will not have the diversification offered by money market mutual funds or the protection, including quality standards, provided by the Investment Company Act of 1940.
 
what do they mean by unsecured senior debt obligations? "rated below investment grade by major credit" is this why they are not fdic insured?
 
Unsecured means there is nothing backing the debt. When you get a loan to buy a house, the house makes it a secured debt. They take your house if you don't pay the mortgage.
So if Ford Credit should go under, you would get nothing or maybe pennies on the dollar back. At least that's they way I understand it.
 
Originally posted by: Ilikepiedoyou
what do they mean by unsecured senior debt obligations? "rated below investment grade by major credit" is this why they are not fdic insured?
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Its not the unsecured part that is the problem, it's the second thing you mentioned. What it means that they are rated below investment grade by major credit rating agencies is that its considered a junk bond. Your invested in a junk bond fund...

I am not saying it is per say a bad investment, just nothing close to a money market fund in terms of safety. There is a very real chance Ford could file for chapter 11 at some point, in which case your "money market" would become equity in a bankrupt company.
 
basically, if you buy this. You're BORROWING money to Ford, who loses billions of dollars each year. Sorry, but for a slightly lower return, I'd much rather be in an insured money market account.

If you were getting 8 or 9%, then you would be getting paid for the risk you're taking. But at only 5.8% or whatever it is, you're taking on a lot of risk for very little extra return.
 
Originally posted by: Jadow
basically, if you buy this. You're BORROWING money to Ford, who loses billions of dollars each year. Sorry, but for a slightly lower return, I'd much rather be in an insured money market account.

If you were getting 8 or 9%, then you would be getting paid for the risk you're taking. But at only 5.8% or whatever it is, you're taking on a lot of risk for very little extra return.
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Yeah, corp spreads are really low right now... honestly to find the best rates, just check bankrate.com


 
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