I currently have a Vanguard account (Mutual Fund) with about $10,000 in it (more now). I have a savings account with about $7,000 which I consider my "rainy day" fund and I try to put money into my savings monthly (last couple of months, I've had to buy stuff for the house so it should be $11,000 but had to drop some serious cash).
Anyways, I want to close my savings account and move my money and get better yields. My brother in law suggested that I put my money in my Vanguard mutual fund. I also began looking into money market accounts. Since my savings is my rainy day fund, here are some requirements:
- Liquidity: I need liquidity because it's my rainy day fund.
- Interest: It doesn't have to be super high but it'd be nice if it yielded more than 0.05% or whatever it is my bank gives me.
- Secure: FDIC backed is a HUGE plus.
Any advice? Would I be better off switching to a money market account? Would a mutual fund do exactly the same thing as a money market or savings accounts? Thoughts and advice are welcomed!