EDIT: Creating a new post with a more accurate screenshot. The table in the Vanguard app (above) oddly has different numbers than the Vanguard desktop site. The desktop table is more accurate.
In July 2025, I started stashing a bunch of my free cash in USFR instead of a Marcus HYSA since my understanding was it’s 1) generally a higher effective interest rate and 2) avoids state/city tax.
Instead, I seem to have seen lower returns than if I had just left it in a Marcus account (as of 1/10/2026, Marcus currently holding steady at 3.65%, while USFR has fluctuated over this period but per Vanguard is yielding 3.60% minus 0.15% expense ratio for net 3.45% return).
Screenshots below. It appears I’m yielding a 3.54% return in July-December 2025 ($81,539.45 December end / $80,352.50 July start = 1.5%. Annualized (divide by 5/12) that’s 3.54%. Minus .15% expense ratio yields net 3.41%.
Am I better off in Marcus, given both USFR and Marcus float with the Fed rate? Are the tax savings enough to offset the yield difference? In the long term, what’s the best option?
Apologies for partial table in screenshot, I’m on phone and can’t do landscape view (and it only lets me add 1 attachment). Let me know if anything’s missing and I’ll add another screenshot.