vanguard money market fund rates
Money Market – Vanguard?
I'd like to transfer $ 15,000 to Vanguard. I heard about the interest rate is 5.10% Vanguard to pay for their "first money market fund. However, I also read on your site as follows:" A market monetary mutual funds ** ** Not insured or guaranteed by the Federal Deposit Insurance Corporation or any other public body. Although a money market Money seeks to preserve the value of your investment at $ 1 per share, it is possible to lose money by investing in the fund "(https: / / Flagship.vanguard.com / VGApp / HNW / FundsSnapshot? Fund = FundIntExt = 0030 & INT) Does this mean I lose my money, because their market accounts Money is not insured? I would not mind the risk losig $ 10, but I do not want to risk my money in full. Please help.
I was a vanguard of the Prime Money Market for years and I love it. I did a lot of research before choosing the place of my emergency fund, and I have never regretted. PS-In fact, until last month, they pay 5.22%. It is true that money market funds are not insured by the FDIC, because they are not cash – Technically it is investing in Treasury bonds and paper any night. Basically, you invest in ultra short term (overnight) of bonds guaranteed by the U.S. government. Who is as safe as it obtained. Simply because, as a warning not to confuse people with your investment money from a bank. But the only way to lose money money market is if the government fails in its debt – ie, refusing to pay all bonds and obligations. This can ever. If you do, then we are in a total collapse of the global economy, and you can be sure you have more problems with loss of 15,000 $ (More money could become worthless as when Russia defaulted on its debt and currency people burn to keep warm and a loaf of bread cost barrels full money). In short, do not worry about your money market. It's pretty much the safest place you can put your money. I would not trust the FDIC to pay in a collapse of the global economy anyway.
