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Very important distinction between money market funds and checking accounts is that they aren't FDIC insured.
by whatok 8y ago
Very important distinction between money market funds and checking accounts is that they aren't FDIC insured.
- icedchai 8y agoTrue, true. But with a megacorp like Vanguard backing it, I'm personally not too concerned...
- rfinney 8y agoVanguard is not a corporation. It is structured as a mutual company; it is owned by funds managed by the company, and is therefore owned by its customers. See: https://en.wikipedia.org/wiki/The_Vanguard_Group https://en.wikipedia.org/wiki/The_Vanguard_Group
- icedchai 8y agoVanguard has many pieces and parts, many of which are, indeed, corporations. It says so on the bottom of its website: "Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC." Regardless of its legal structure, I meant "megacorp" in the generic sense of "large company." It is a large company.
- rfinney 8y agogood point. Vanguard has a pretty good reputation regardless of it's company structure. I'm not so trusting of some other financial firms.