Vanguard Money Market Rates
There are a lot of ways to invest money at Vanguard. We here at Money Market Rates 101 want to show you the best rates at Vanguard right now. Finding the greatest return from your Vanguard Money Market Fund is the surest way to keep steady, healthy, high returns.
The most common and widely used fund is the Vanguard Prime Money Market Fund (VMMXX). The income from this fund, however, is taxed at both state and federal levels, so it is not considered a good retirement fund. It does have some of the best Vanguard money market rates, however.
The Prime Fund is a low-risk investment fund with some of the steadiest rates at Vanguard. It requires $3,000 minimum to invest and has an expense ratio of 0.28%, one of the lowest for this category. It’s shown steady increases in growth since 1999 with a growth averaging 3.34% annually over the past ten years.
The popular Treasury Fund in the Vanguard Money Market Fund portfolio is closed to new investment right now and has hit some real rocky roads this year as the U.S. Treasury continues to keep interest rates low, thus making Treasuries less appealing.
If you live in California, New Jersey, New York, Ohio, or Pennsylvania, a state-specific Vanguard Money Market Fund might be right for you. These are good retirement funds, buying bonds from those states and keeping them tax-exempt on returns so your retirement money is not taxed. These kinds of funds are often called “double tax free” funds.
Other rates at Vanguard can be gained by investing in AMT (tax-free) Vanguard Money Market Fund offers. These have specific rules, however, and may not have the kind of Vanguard money market rates you’re looking for.
None of these investments, of course, are insured by the FDIC, being market investments and not bank offers.