Vanguard Settlement Fund Account

Hi guys. I’m new to stock investing. If I have money sitting in the settlement fund account, does that earn dividends? Or would I need to open a general investment account? I have few extra money sitting in my bank savings account (emergency funds) but I don’t want to lock those funds in the IRA account, which I already have. Thank you.

Hi Angel,
Your settlement fund money probably earns .01% per year. Your settlement fund exists INSIDE some type of investment account, so it’s not one or the other!
With a Roth IRA, you can take out the principle at anytime with no penalty. Another option is to invest in a taxable brokerage account, but you will have to pay tax on the gains when you take out the money. Hope that helps!