I have used the FMM for many years for the majority of my cash savings - great interest rate but not FDIC insured.
I moved 80% of my balance out of there when the virus hit to a local FDIC savings account.
Is anyone else concerned with FMM given current outlook??
I had it back in the late 90's early 2000's. They used to pay good rates, now about the same as everyone else.
Oh heck no.
Moved most to “stable” value funds like Vanguard GNMA fund. And laddered 2 years of cash into CDs.
If the US government bonds look to become unstable I will sell the funds and hold cash.
I moved 70% out initially but i plan to move it back to Ford and just watch the economic outlook. I think it is fine for now.
Attractive rates but like previously mentioned, the fund invests in unsecured debt and it is not insured by FDIC. I've been putting money in Ally Bank (on-line) for the last few years. Currently they pay 1.5% and are FDIC insured. It all comes down to the level of acceptable risk that you are comfortable with.
It is called Ford Interest Advantage FIA. I moved my money out. dangerous water ahead
I have used FMMA Money Market Interest Advantage for > 30 years until 6 months ago. My Financial Advisor said get out NOW and move into FDIC accounts. FMMA used to pay good interest, but not any more, and the RISK much greater now. I moved a huge chunk of cash out of FMMA into a FDIC online bank paying nearly the same interest. FMMA didn't even ask why, and I sleep better. Just for reference, Ford Interest Advantage 1.65% (no FDIC), Ally Bank 1.5% FDIC). LOL.
5-6-20
FORD STOCK PRICE: DOWN...10 CENTS... TO $4.87
TESLA: UP $13.47 TO... $782.58
GM: UP $0.63 TO... $21.89
mo–nS
Absolutely moved most of my money out of it. Continuing to move more the longer this goes on. Will keep the minimum. Did the same thing in 2008-2009.
Okay...
i'll bite:
just before things hit the fan... interest rates were around 1.8% - 2.0% for Online Savings accounts.
How much was the Ford Money Market yielding?
:]
Ya'll making too much GRAVY havin these money market accounts and all.
Any recommendations for a decent fdic alternative?
Thanks!
I moved 96% of my Ford Interest Advantage funds in mid March to a FDIC insured account. The Ford interest is better because of the higher risk but safe cash in this environment is more important.
Yes, I did the same just leaving 1k with them until we get a clearer picture of what is going on.