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DavidC
Posted: 20 June 2023 10:48:57(UTC)
#17

Joined: 17/02/2014(UTC)
Posts: 37
Joe Soap;270367 wrote:
[quote=Aminatidi;270364]

Edited to add, I looked and the Vanguard money market fund doesn't have accumulation units. That might not bother some people but rules it out in my case. I don't want a monthly income from the fund.


If you're looking to take cash out in the near future, do you really mind if it spins off a little cash in the interim? The cash can just sit in your account, earning a little interest and avoiding a tiny bit of risk. I've had to get used to this idea with my Vanguard SIPP. As others have noted, lots of Vanguard funds and ETSs come in acc and inc versions, but for some reason Vanguard only make the income versions available on their own platform.
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Joe Soap
Posted: 20 June 2023 11:20:06(UTC)
#18

Joined: 24/01/2010(UTC)
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DavidC;270558 wrote:
Joe Soap;270367 wrote:
[quote=Aminatidi;270364]

Edited to add, I looked and the Vanguard money market fund doesn't have accumulation units. That might not bother some people but rules it out in my case. I don't want a monthly income from the fund.


If you're looking to take cash out in the near future, do you really mind if it spins off a little cash in the interim? The cash can just sit in your account, earning a little interest and avoiding a tiny bit of risk. I've had to get used to this idea with my Vanguard SIPP. As others have noted, lots of Vanguard funds and ETSs come in acc and inc versions, but for some reason Vanguard only make the income versions available on their own platform.

With a March 24 drawdown and dividends accruing from April 23 onwards some of the dividend money is sitting there for nearly a year. It didn't used to matter so much when interest rates were 0.1%. But with near 10% inflation and 5% interest rates, I think I can no longer ignore it.

II don't list an accumulation version of the Vanguard money market fund.

I have decided to try the I class accumulation units in the abrdn (how I despise that spelling) money market fund. Ordered some yesterday and it's in my II account this morning.

Thanks all for the interest in this topic.
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Phil 2 on 01/07/2023(UTC)
Thrugelmir
Posted: 20 June 2023 11:59:41(UTC)
#32

Joined: 01/06/2012(UTC)
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Tim D;270399 wrote:

Think this might be something to do with the FCA... a few years ago they decided some punters were sitting on too much cash and needed a nudge into more growthy assets (of course while simultaneously hand-wringing about other punters being too risk-on in crypto, day-trading "stonks" etc)



Platforms business models worked on the basis of earning interest on clients cash account balances by placing it on overnight bank deposit. As the FCA pressurised the platforms to offer interest on said cash balances to their customers. Then platforms have started to amend their charging structures. Never any free lunches in this world.
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Phil 2 on 01/07/2023(UTC)
Peanuts
Posted: 27 June 2023 20:49:27(UTC)
#34

Joined: 16/02/2019(UTC)
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Am i right in thinking this is the up to date SONIA yield - 4.93%

https://fred.stlouisfed.org/series/IUDSOIA
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Phil 2 on 01/07/2023(UTC)
Peanuts
Posted: 09 August 2023 08:04:13(UTC)
#35

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SONIA now 5.18%
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mdss68 on 09/08/2023(UTC), Johan De Silva on 09/08/2023(UTC)
mdss68
Posted: 09 August 2023 08:10:07(UTC)
#36

Joined: 20/09/2018(UTC)
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L. Richardson;275751 wrote:
SONIA now 5.18%


Noticed that last night & meant to dig this thread up & post it! There is some lag while this month's stuff rolls over into next's, but you do see the uplift pretty quickly.

I'd actually assumed I'd be reducing by now, but another 10K is going in today :) Rude not to!
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Peanuts on 09/08/2023(UTC), MartynC on 09/08/2023(UTC)
Johan De Silva
Posted: 09 August 2023 08:10:31(UTC)
#37

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As SONIA goes up bond proxies go down. Stocks also need to work much harder to beat the risk-free rates. This relationship will change at some point. We just don't know when.

This is a good SONIA chart to bookmark and gives you all the rates under the chart:
https://tradingeconomics...-interbank-average-rate

I am very happy with Royal London Short Term Money Market Fund.
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4 users thanked Johan De Silva for this post.
Helen L on 09/08/2023(UTC), Peanuts on 09/08/2023(UTC), MartynC on 09/08/2023(UTC), Kevin Crane on 06/01/2024(UTC)
MartynC
Posted: 09 August 2023 08:41:21(UTC)
#38

Joined: 02/11/2017(UTC)
Posts: 397
Johan De Silva;275753 wrote:


I am very happy with Royal London Short Term Money Market Fund.


Are you using the HL platform - I suppose you would get about 4.5% currently on the H-L platform ?
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mdss68
Posted: 09 August 2023 08:52:56(UTC)
#39

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MartynC;275756 wrote:
Johan De Silva;275753 wrote:


I am very happy with Royal London Short Term Money Market Fund.


Are you using the HL platform - I suppose you would get about 4.5% currently on the H-L platform ?



I am, and if you're asking do they charge me the 0.45% platform fee, yep.....they do like their pound of flesh!

Even so......
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MartynC on 09/08/2023(UTC)
Johan De Silva
Posted: 09 August 2023 09:27:45(UTC)
#40

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mdss68;275759 wrote:
MartynC;275756 wrote:
Johan De Silva;275753 wrote:


I am very happy with Royal London Short Term Money Market Fund.


Are you using the HL platform - I suppose you would get about 4.5% currently on the H-L platform ?



I am, and if you're asking do they charge me the 0.45% platform fee, yep.....they do like their pound of flesh!

Even so......

0.45% seems accessive these days and thankfully I am not on that.
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1 user thanked Johan De Silva for this post.
Kevin Crane on 06/01/2024(UTC)
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