SAFETY OF CASH IN BANK ACCOUNTS

Upon hearing that bank accounts had been hacked in several prominent banks, I took some of my cash out and put it into a vanguard money market. was this a wise decision, or is my money safer in the bank?

Terry Says:  Oh gosh, you got carried away.  I never read that bank accounts had been “hacked” — only that some retail merchants had credit and debit card info stolen.  Every penny in an FDIC insured bank account is guaranteed safe.  Frankly, I think a Vanguard MM fund is equally safe, although it does invest in either T-bills (most secure) or short-term commercial paper, depending on the MM fund you chose.  It is theoretically possible that the value of those MM fund shares could “break the buck” and thus be worth a tiny bit less in case of a financial crisis.  I think that’s a long shot, though.  Still, you need to learn the facts before you act.  The next time you might make a big mistake!