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Vanguard is testing out two different cash programs. One is a bank sweep option for brokerage settlement accounts (Vanguard Cash Deposit). The other (Vanguard Cash Plus Account) provides enables bill payment but only via ACH pull (no checkwriting, no bill pay, no debit/ATM card).
You must be an existing Vanguard client to be considered. Not all Vanguard clients will be eligible to open a Cash Plus Account.
You must be an existing Vanguard client to be considered. Not all Vanguard clients will be eligible for Vanguard Cash Deposit.
Every time I've tried, I've received the message:
Enrollment is closed for now, but we’ll be in touch
We’re sorry you weren’t included in the pilot phase of Vanguard Cash Deposit. We’re in the process of adding clients and will let you know as soon as it’s ready for you.
We're sorry you weren't included in the pilot phase of the Vanguard Cash Plus Account. We're in the process of adding clients and will let you know as soon as it's ready for you.
Regarding the settlement sweep account, it's a nice option for people who don't feel comfortable using a government MMF (VMFXX) and would prefer a bank sweep. But it comes with a cost. Current 7 day yield on VMFXX is 5.02% (annual yield of 5.15%), while the bank sweep offers an APY of 3.5%.
The bank offering is more competitive. 4.5% though with very limited "banking" capabilities. Note that it is structured as a brokerage account with a bank sweep, as opposed to a pure bank account like a Schwab Bank account.
These two programs are all well and good, but not something I'd go out of my way for. Though 4.5% FDIC-insured is attractive at the moment. As a Vanguard client, I might use it (if Vanguard would deign to let me in).
Thanks for your comments @msf . After their boondoggle on Sunday evening RMD withdrawal, which hopefully will get straightened out tomorrow, I'm thinking they need to get their ( platform, operating system), performing before adding any more customer benefits . Second time in a month I had to dial them up !
Comments
https://investor.vanguard.com/investment-products/cash-investments
These programs are more or less by invitation: Every time I've tried, I've received the message: Regarding the settlement sweep account, it's a nice option for people who don't feel comfortable using a government MMF (VMFXX) and would prefer a bank sweep. But it comes with a cost. Current 7 day yield on VMFXX is 5.02% (annual yield of 5.15%), while the bank sweep offers an APY of 3.5%.
The bank offering is more competitive. 4.5% though with very limited "banking" capabilities. Note that it is structured as a brokerage account with a bank sweep, as opposed to a pure bank account like a Schwab Bank account.
These two programs are all well and good, but not something I'd go out of my way for. Though 4.5% FDIC-insured is attractive at the moment. As a Vanguard client, I might use it (if Vanguard would deign to let me in).
I've seen at least a couple of the sweep program banks mentioned in articles of banks possibly at risk: Huntington National Bank (part of Huntington Bancshares) and Valley National Bank. There are also very solid banks on the list.
Good evening, Derf