Fidelity or Vanguard money market funds seem better than any other savings account like Goldman Marcus etc.

Am I missing something? Why do people keep money at Marcus in this market?

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100% agree with you. Unless to always have a referral bonus and are in a state with no income tax, MM and TBills are better.

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Search the bowl. People have been constantly tell people to use money market funds instead of HYSA. Much of that is due to state tax benefits. Some HYSA are pretty close if you have no state tax. Some people are concerned that money markets are not FDIC insured also

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Thank you

I put my emergency funds in t bills

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Are those money market funds insured by FDIC?

If it is in SPAXX it will earn interest of about 5%. You can look for one with a little better rate but unless you have a lot in it, it may not matter much

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FDIC definitely matters. Although I can’t imagine a world where Vanguard defaults on the short term funds.

Marcus is giving an extra 1% to each party with a referral. That seems to be a good deal. Let me know if anyone is interested in it.

Yes I think for 3 months. Are you interested in it?

What is the benefit with state tax for money market funds?

Many mm funds hold federal government securities and interest on those is free of state tax in most states (but not California).

Fidelity SPAXX has 0.42% expense ratio so is it fair to deduct that from the currently estimated ~5% rate that is offered?

The 5% is after the expense ratio

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