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https://money.stackexchange.com/questions/19073/why-does-the-vanguard-money-market-index-fund-return-so-much-less-than-a-checkin

The problem I am having is this... I have not allocated any of my assets in my Vanguard IRA yet. They sit in Vanguards MMA account (VMMXX, their one and only I believe. According to Morning star it has a yield of .04%. What I fail to understand is, shouldn't money market accounts return better than checking or savings accounts always? Is the yield really .04? If so I feel that is very strange, it's almost like they are punishing me for not choosing one of their products, which I suppose makes sense from a (greedy) business process.

Either way there is a problem here. The the issue with closing the question is, is it too localized. That doesn't appear to be the case, as VMMXX isn't a local issue. Given the number of users who use Vanguard here, that would be like saying the Java NIO package is too localized for Stackoverflow. Or questions asking about a specific version of the NIO package are too localized since a duration of "time" (ie: months) (or a version) is too localized to help many other people. Of course, gold bullion speculation isn't too localized, as that has nothing to do with timing.

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    You need to realize that other sites modify the definitions, to some extent. It's not a free-for-all, but there is a pattern of new requirements being discovered as new topics are given the SEI Q&A treatment. Asking about one specific stock or fund is generally too localized on this site. However, asking about things which apply to specific types of financial instruments is certainly acceptable. The typical pattern we encourage is to use the specific stock/fund/etc as an example, while asking about the situation, principle or what-have-you. – George Marian Jan 18 '13 at 19:31
  • The problem I am having is this... This is usually the place to start. So, try to convey the problem that you're having while keeping in mind that you may not know what questions to ask. The first paragraph in this question is a very good start. All it needs is some polish. – George Marian Jan 18 '13 at 19:36
  • "Asking about one specific stock or fund is generally too localized on this site." Yes, except for this case, clearly. This is not a fund that you pick, any Vanguard customer who doesn't invest into a specific stock will have their money in this MMA. – Zombies Jan 19 '13 at 12:24
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    So, rather than taking the hint and editing so it includes what you've stated here in the first paragraph, you decide to level empty, nonsensical threats at us. It would have taken less effort for you to correct the problem and have the question re-opened. – George Marian Jan 19 '13 at 14:50
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Keep in mind, rants (your series of comments in the original question) about those who post here are inappropriate. The posters are simply trying to help those with questions, while adhering to the TOS of this board. By the way, the board is private property, and we are guests.

My opinion (and I use that phrase to indicate that first, it's not fact, and second, with discussion, it may change) is that the question was too localized. Vanguard is one MMA vendor of thousands. So asking about a specific MMA at this moment in time isn't really likely be benefit future readers who see MMAs yielding 5%.

The other reason to close is the 'not a real question,' that responses will be less about fact and more a back-and-forth debate.

Last - references to other board's policies don't mean much as I (and most finance guys here) might not frequent Stackoverflow, so the analogies don't help.

  • "Vanguard is one MMA vendor of thousands." Nobody opens a vanguard account to for the MMA. Your uninvested money defaults into that account. Therefore everyone who has a vanguard account (we should get rid of the vanguard tag for being too localized?) has a very good chance of having this. – Zombies Jan 19 '13 at 12:22
  • Why close the question instead of working with the editor first? At this point the question is closed and you seem unwavering in the slightest to acknowledge that a broad duration of months (and years) is not too localized. It seems that since you have established your opinion, the chances of you changing your mind at this point, despite what new information you are presented, are slim to none. – Zombies Jan 19 '13 at 12:29
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    @Zombies - For those who do exactly what George above asked, the chances are good the question gets reopened. And giving the mechanics of SE, you don't need to convince me of anything, it gets reopened regardless of my opinion. But, if the group reopens based on your changes, I'm supportive of that. As George said, you came back, blasted out 4 comments, but no attempt to edit the question for reconsideration. BTW - have you gone back to money.stackexchange.com/questions/19195/… ? After the comments there, I spent some time to answer you. – JTP - Apologise to Monica Jan 19 '13 at 15:02
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I think if you had rephrased the question as suggested by others it would have remained ... you can also submit another question for example ...


Can the Money Market Account Return yield lower than a Savings Account?

For example Vanguard's MMA account (VMMXX), according to Morning star it has a yield of .04%. Is this right? or have I understood/read it incorrectly?

What I fail to understand is, shouldn't money market accounts ALWAYS return better than checking or savings accounts? Are there any factors that affect its return being lower than Savings Account? Is there some site that gives a histroic comparision of a typical MMA Retruns and Interest Rate on Savings Account.

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