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Originally Posted by Sandy and Ed
Yeah but how about Federal Money Markets??
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You really need to read the prospectus of a money market fund. The Vanguard Cash Reserves Federal Money Market fund is extremely safe because most of the securities are either U.S. Government securities or securities that are collateralized by U.S. Government securities. They are also very short term securities, which increases the overall safety of the fund. So, most of the assets are backed by the U.S. Government.
But, this is not the same as FDIC insurance, which is used to insure bank securities. But, you can buy FDIC insured bank CDs from Vanguard or Fidelity. They are called brokered CDs. Some are new issues and some are after market issues.