Vanguard is Discontinuing their VanguardAdvantage Accounts

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iamblessed
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by iamblessed » Fri Mar 01, 2019 12:57 pm

How long has Fidelity had this CMA account?

stan1
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by stan1 » Fri Mar 01, 2019 1:05 pm

retiringwhen wrote:
Fri Mar 01, 2019 12:55 pm
stan1 wrote:
Fri Mar 01, 2019 12:49 pm
As someone who mostly uses Vanguard ETFs and who has only called Vanguard twice in the last 10 years I'm fine with cutting expenses on services I don't use. I'm all in on cost accounting that allocates expenses to share classes based on actuals. Mutual fund owners who want to keep the legacy IT platform should pay for it not ETF investors. Flagship customers should get a rep at a call center not a dedicated person. Customers that want more service than they get at Walmart go to Nordstrom so with investing people can choose to go to Fidelity or Merrill if they want to pay for extra services.

I do see that if I'm in my 80s I might want to move assets to a full service financial services firm that would offer increased personalized service to my executor or guardian if that unfortunate step ever became necessary. Vanguard might not exceed at the special cases these situations bring up.
After being a front-seat observer of an estate being managed out of a full-service financial services firm, I would hazard that 90% of all investors would do their heirs a great service by putting their money at Vanguard. Every single thing costs tons of money to do and the help just got in the way. I would hazard that the brokerage siphoned a good 3-4% off the assets by their shenanigans by either levying fees or giving and controlling advisory actions that were not truly in the interest of the estate.
I do not have confidence that Vanguard's call centers would handle a complex situation like guardianship for a high net worth individual as well as employees at a local walk in Schwab or Fidelity office (leaving Merrill et al out of the mix). Especially if the executor or guardian was not particularly interested in finances or had a busy full time job.

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AzRunner
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Vanguard to discontinue Advantage Checking

Post by AzRunner » Fri Mar 01, 2019 1:31 pm

[merged into existing topic - moderator prudent]

I received an email from Vanguard saying that they were going to discontinue Vanguard Advantage Checking as of 7/31/2019. Vanguard is vague as to why the service is being discontinued. I've been using it for years and have been happy with it. I open this topic for anyone who finds additional information concerning why Vanguard has decided to drop this service.

PatrickA5
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by PatrickA5 » Fri Mar 01, 2019 1:34 pm

stan1 wrote:
Fri Mar 01, 2019 1:05 pm
retiringwhen wrote:
Fri Mar 01, 2019 12:55 pm
stan1 wrote:
Fri Mar 01, 2019 12:49 pm
As someone who mostly uses Vanguard ETFs and who has only called Vanguard twice in the last 10 years I'm fine with cutting expenses on services I don't use. I'm all in on cost accounting that allocates expenses to share classes based on actuals. Mutual fund owners who want to keep the legacy IT platform should pay for it not ETF investors. Flagship customers should get a rep at a call center not a dedicated person. Customers that want more service than they get at Walmart go to Nordstrom so with investing people can choose to go to Fidelity or Merrill if they want to pay for extra services.

I do see that if I'm in my 80s I might want to move assets to a full service financial services firm that would offer increased personalized service to my executor or guardian if that unfortunate step ever became necessary. Vanguard might not exceed at the special cases these situations bring up.
After being a front-seat observer of an estate being managed out of a full-service financial services firm, I would hazard that 90% of all investors would do their heirs a great service by putting their money at Vanguard. Every single thing costs tons of money to do and the help just got in the way. I would hazard that the brokerage siphoned a good 3-4% off the assets by their shenanigans by either levying fees or giving and controlling advisory actions that were not truly in the interest of the estate.
I do not have confidence that Vanguard's call centers would handle a complex situation like guardianship for a high net worth individual as well as employees at a local walk in Schwab or Fidelity office (leaving Merrill et al out of the mix). Especially if the executor or guardian was not particularly interested in finances or had a busy full time job.
It's a toss up. Would I be better off having DW (or kids) handle things over the phone with VG or at an office with Fidelity? Does the potential for upselling at Fidelity (or Schwab) negate the positives of having an office to go to? Would my heirs be better off possibly going with PAS at VG versus a more expensive option at FIDO? These are the questions I'm trying to figure out. Vanguard getting rid of Advantage accounts was just one more reason why I might want to move (but not the biggest reason).

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Re: Discontinuing VanguardAdvantage Accounts

Post by SevenBridgesRoad » Fri Mar 01, 2019 1:49 pm

MnD wrote:
Thu Feb 28, 2019 12:30 pm
Nala wrote:
Thu Feb 28, 2019 11:49 am
First, not all bills can be automatically paid by charging to credit card or by bank draft. Second, I like to review my bills before they get paid. Ever hear of incorrect charges?
Increasingly few. Credit cards is our default. Bank draft is down to the power company that surcharges for CC's and paying the CC's. Paper checks are down to "her haircut" and the occasional independent home contractor that doesn't take cards. I review all our bills/charges before they get auto-paid in full on the CC due date. I haven't seen an incorrect charge in many years - maybe decades. Haven't had a use for push-type "bill pay" service ever. Computers are much more accurate and reliable than humans for routine rule-based things.
+1
This, combined with a monthly automatic transfer from VG to bank (credit union). I’ll occasionally ‘tune’ the transfer if needed.
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jpsfranks
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by jpsfranks » Fri Mar 01, 2019 2:02 pm

iamblessed wrote:
Fri Mar 01, 2019 12:57 pm
How long has Fidelity had this CMA account?
I don't know exactly when they started it but I have had a cash account since 2007 (I think then it was branded a "mySmartCash" account). Fidelity has supported various checking functions out of normal brokerage accounts for much longer than that.

MisterMister
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by MisterMister » Fri Mar 01, 2019 2:04 pm

Payment methods has been a subtopic here.

Automatic bank drafts
-Medicare insurance and Medicare drug and treatment supplement insurance
-Utility bills
-Life insurance policies

I don't ever want to miss any of the insurance payments and I'm not worried enough about incorrect charges on my utilities to justify manual review. In a few cases, bank drafts were the only option offered anyway.

Everything else is CC (paperless statements). I use bill pay at my bank to pay these and can review the bills before doing so.

This is the balance that works for me.

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by Broken Man 1999 » Fri Mar 01, 2019 2:09 pm

PatrickA5 wrote:
Fri Mar 01, 2019 1:34 pm
stan1 wrote:
Fri Mar 01, 2019 1:05 pm
retiringwhen wrote:
Fri Mar 01, 2019 12:55 pm
stan1 wrote:
Fri Mar 01, 2019 12:49 pm
As someone who mostly uses Vanguard ETFs and who has only called Vanguard twice in the last 10 years I'm fine with cutting expenses on services I don't use. I'm all in on cost accounting that allocates expenses to share classes based on actuals. Mutual fund owners who want to keep the legacy IT platform should pay for it not ETF investors. Flagship customers should get a rep at a call center not a dedicated person. Customers that want more service than they get at Walmart go to Nordstrom so with investing people can choose to go to Fidelity or Merrill if they want to pay for extra services.

I do see that if I'm in my 80s I might want to move assets to a full service financial services firm that would offer increased personalized service to my executor or guardian if that unfortunate step ever became necessary. Vanguard might not exceed at the special cases these situations bring up.
After being a front-seat observer of an estate being managed out of a full-service financial services firm, I would hazard that 90% of all investors would do their heirs a great service by putting their money at Vanguard. Every single thing costs tons of money to do and the help just got in the way. I would hazard that the brokerage siphoned a good 3-4% off the assets by their shenanigans by either levying fees or giving and controlling advisory actions that were not truly in the interest of the estate.
I do not have confidence that Vanguard's call centers would handle a complex situation like guardianship for a high net worth individual as well as employees at a local walk in Schwab or Fidelity office (leaving Merrill et al out of the mix). Especially if the executor or guardian was not particularly interested in finances or had a busy full time job.
It's a toss up. Would I be better off having DW (or kids) handle things over the phone with VG or at an office with Fidelity? Does the potential for upselling at Fidelity (or Schwab) negate the positives of having an office to go to? Would my heirs be better off possibly going with PAS at VG versus a more expensive option at FIDO? These are the questions I'm trying to figure out. Vanguard getting rid of Advantage accounts was just one more reason why I might want to move (but not the biggest reason).
It is my hope that having a sound (at the moment) estate plan that has been shared with those we intend to administer the plan will lead to few surprises overall. One plus is DDs all have ties to Vanguard, via TIRAs and their children's 529 plans. As well they know how Vanguard-concentric our retirement portfolio is already, as we willingly share the info now, and have done so for years.

I certainly don't think for a minute there won't an issue or two pop up, but I'll do the best I can to set things up.

Broken Man 1999

ETA: It is entirely possible I will have added the Vanguard PAS services whilst I am still managing our portfolio. That action might make it even easier for those left behind.
Last edited by Broken Man 1999 on Fri Mar 01, 2019 2:29 pm, edited 1 time in total.
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LonePrairie
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by LonePrairie » Fri Mar 01, 2019 2:12 pm

Last fall I became dissatisfied with my old interest-bearing checking account at Wells that requires a $7,500 balance to avoid fees. I seriously considered Vanguard Advantage, but realized I'd still need a local bank account for cashier's checks, ATM withdrawals, and paper check deposit. (I'm not near a PNC branch.)

I opened a new checking account at Wells that requires only $500/month direct deposits to avoid fees, no minimum balance. It took a couple of months to move my automated withdrawals and deposits to the new account and just this week I brought the balance on the old account to zero and closed it. I'm going to keep a cushion in my Vanguard money market account and move money between that and the new checking account when necessary.

SO GLAD I didn't open a Vanguard Advantage account and go through the hassle of moving autopays to it. Whew.

MisterMister
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by MisterMister » Fri Mar 01, 2019 2:15 pm

PatrickA5 wrote:
Fri Mar 01, 2019 1:34 pm
...
It's a toss up. Would I be better off having DW (or kids) handle things over the phone with VG or at an office with Fidelity? Does the potential for upselling at Fidelity (or Schwab) negate the positives of having an office to go to? Would my heirs be better off possibly going with PAS at VG versus a more expensive option at FIDO? These are the questions I'm trying to figure out. Vanguard getting rid of Advantage accounts was just one more reason why I might want to move (but not the biggest reason).
Fidelity's investment "upsell" options consist of their own PAS, and some investment companies that Fidelity has a relationship with that they will refer you to. The latter includes alternative investment options that are a bit more esoteric than simple stocks/bond funds that would comprise a BH three-fund portfolio. And yes, Fidelity does get a commission if you choose one of these. All are about triple the cost of VG PAS.

I don't find that Fidelity does a hard sell, but it wouldn't require a hard sell to convince an heir without a lot of self-confidence that they need one of these services. And in fact, in my case they will need a service, but if you believe in a simple 3-fund portfolio, then PAS is hardly worth the fee that Fidelity charges. So I will plan for a cut-over to VG's PAS at some point and document what needs to be done.

criticalmass
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Re: Discontinuing VanguardAdvantage Accounts

Post by criticalmass » Fri Mar 01, 2019 2:18 pm

sleepysurf wrote:
Thu Feb 28, 2019 12:40 pm
Hah! I also JUST transitioned to VanguardAdvantage, and spent yesterday evening setting up all my BillPay accounts, and deleting them at Bank of America. Not happy! :(

I agree they seem to be driving away their higher net worth clients. I even transferred my DAF from Vanguard to Fidelity last year, as the Fidelity plan allows grants as little as $50.
The bigger question is, how many higher net worth clients use Advantage services? Likely, not many. Vanguard knows the answer, and it's clearly not nearly enough to justify offering the service to them. Perhaps BNY Mellon (the actual banking provider) raised their fees too. But hopefully this means that resources drained on Advantage can be put to good use in Vanguard's core product.

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heartwood
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Re: Discontinuing VanguardAdvantage Accounts

Post by heartwood » Fri Mar 01, 2019 2:46 pm

criticalmass wrote:
Fri Mar 01, 2019 2:18 pm
sleepysurf wrote:
Thu Feb 28, 2019 12:40 pm
Hah! I also JUST transitioned to VanguardAdvantage, and spent yesterday evening setting up all my BillPay accounts, and deleting them at Bank of America. Not happy! :(

I agree they seem to be driving away their higher net worth clients. I even transferred my DAF from Vanguard to Fidelity last year, as the Fidelity plan allows grants as little as $50.
The bigger question is, how many higher net worth clients use Advantage services? Likely, not many. Vanguard knows the answer, and it's clearly not nearly enough to justify offering the service to them. Perhaps BNY Mellon (the actual banking provider) raised their fees too. But hopefully this means that resources drained on Advantage can be put to good use in Vanguard's core product.
define "higher net worth clients" and you might get some meaningful responses.

Gadget
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by Gadget » Fri Mar 01, 2019 3:07 pm

I see a lot of recommendations for Ally, but for someone who relied on Vanguard Advantage like it was a checking account, it seems to me like the only truly comparable service is Fidelity CMA. It doesn't have quite as good of money market rates as Vanguard, but it adds free ATM withdrawls everywhere. But for those who want painless auto sell of money market funds to cover expenses, this seems like the best option. I looked into Schwab before, but having to sell high yielding money market funds to cover expenses is a deal breaker for me.

I've been using Fidelity CMA for a few months now and love it. You don't have to worry about transfering funds from a savings account, savings account withdrawl monthly restrictions, or selling money market funds in advance to cover expenses. I have too many auto debited credit card and utility bills all at different times of the month to deal with constantly transfering money and/or selling funds to cover expenses. Ally seems like a great bank, but it doesn't seem to offer perfectly comparable functionality to Fidelity CMA or Vanguard Advantage.

Setup and details on Fidelity CMA are covered extensively in this thread:
viewtopic.php?f=2&t=266538&start=350

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Artsdoctor
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Re: Discontinuing VanguardAdvantage Accounts

Post by Artsdoctor » Fri Mar 01, 2019 3:13 pm

hotpancakes wrote:
Thu Feb 28, 2019 11:27 pm
klaus14 wrote:
Thu Feb 28, 2019 11:02 pm
hotpancakes wrote:
Thu Feb 28, 2019 2:40 pm
If you're looking for a replacement for VanguardAdvantage, I can recommend a Fidelity CMA account. Here's what's nice about it:

1) No minimums. No fees.
2) Debit card that refunds all ATM fees worldwide.
3) No foreign transaction fees at ATMs outside the U.S. (There is a FTF when paying at merchants, but just use a 0% FTF credit card for that).
4) The sweep account interest rate is low, *BUT* Fidelity Money Market mutual funds count as liquid cash and are automatically liquidated behind the scenes without any involvement by you. If you purchase SPRXX, for instance, your current interest rate on cash is 2.27%.
5) Free wire transfers (in addition to ACH), both incoming and outgoing.
6) Free paper checks.
7) Free BillPay. Additionally, funds are debited from your account when the check is cashed, not when the check is sent like many other services.
8) High daily mobile check deposit limits ($50k/100k+).
8) 24/7 customer service.
I have cash management features in my regular Fidelity brokerage account. instead of having a separate cash management account. I wonder if all of these apply to regular brokerage or not.

i have a debit card and a check book.
I believe the Fidelity Brokerage (not CMA) account offers the same features, but only rebates ATM fees if your balance is high enough ($250k?).
This is exactly what I'm trying to dissect. I just spoke with my Fidelity customer service representative about the differences between a Fidelity Cash Management Account and a routine Fidelity brokerage account.

The Fidelity CMA sweep account is the only one you can use and this pays an insignificant amount of interest. If you use your Fidelity brokerage account, you can choose between core funds that pay about the same as your Vanguard Federal Money Market account (the settlement fund at Vanguard).

You can get your checks and your ATM at both types of accounts (although I didn't ask about reimbursement of ATM fees with your brokerage account).

Both accounts allow bill pay and autopay.

So I'm trying to see the advantage of a Fidelity CMA over a standard brokerage account. It seems to me that you'd come out ahead with the brokerage account because your core account would be earning about 2% versus the CMA sweep account of something like 0.10%.

Have others used a Fidelity brokerage account as their de facto checking account with autopay and bill pay features?

essbeer
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by essbeer » Fri Mar 01, 2019 3:16 pm

I wish they'd simply raise the fees to cover the costs. I was already paying $30/year, I'd likely be willing to pay more. I'm not adverse to paying for something of value.

Indxer
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Re: Discontinuing VanguardAdvantage Accounts

Post by Indxer » Fri Mar 01, 2019 3:25 pm

Snapper wrote:
Thu Feb 28, 2019 11:05 am
Apparently they do not see the need to offer full service. I want a simple solution for DW in the event of my demise. I was planning to close out my Fidelity accounts but will now think again. The Advantage Account was not the best as you had the ATM fees to contend with, but it worked. Decent index funds are available in many places these days. Fidelity seems to be going in the opposite direction as Vanguard.
I have been getting this vibe from Vanguard for awhile. I took them up on it and moved my accounts to Fidelity. Their plan has flaws though as part of the transition I switched many ETFs to iShares.

klaus14
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Re: Discontinuing VanguardAdvantage Accounts

Post by klaus14 » Fri Mar 01, 2019 3:51 pm

Artsdoctor wrote:
Fri Mar 01, 2019 3:13 pm
hotpancakes wrote:
Thu Feb 28, 2019 11:27 pm
klaus14 wrote:
Thu Feb 28, 2019 11:02 pm
hotpancakes wrote:
Thu Feb 28, 2019 2:40 pm
If you're looking for a replacement for VanguardAdvantage, I can recommend a Fidelity CMA account. Here's what's nice about it:

1) No minimums. No fees.
2) Debit card that refunds all ATM fees worldwide.
3) No foreign transaction fees at ATMs outside the U.S. (There is a FTF when paying at merchants, but just use a 0% FTF credit card for that).
4) The sweep account interest rate is low, *BUT* Fidelity Money Market mutual funds count as liquid cash and are automatically liquidated behind the scenes without any involvement by you. If you purchase SPRXX, for instance, your current interest rate on cash is 2.27%.
5) Free wire transfers (in addition to ACH), both incoming and outgoing.
6) Free paper checks.
7) Free BillPay. Additionally, funds are debited from your account when the check is cashed, not when the check is sent like many other services.
8) High daily mobile check deposit limits ($50k/100k+).
8) 24/7 customer service.
I have cash management features in my regular Fidelity brokerage account. instead of having a separate cash management account. I wonder if all of these apply to regular brokerage or not.

i have a debit card and a check book.
I believe the Fidelity Brokerage (not CMA) account offers the same features, but only rebates ATM fees if your balance is high enough ($250k?).
This is exactly what I'm trying to dissect. I just spoke with my Fidelity customer service representative about the differences between a Fidelity Cash Management Account and a routine Fidelity brokerage account.

The Fidelity CMA sweep account is the only one you can use and this pays an insignificant amount of interest. If you use your Fidelity brokerage account, you can choose between core funds that pay about the same as your Vanguard Federal Money Market account (the settlement fund at Vanguard).

You can get your checks and your ATM at both types of accounts (although I didn't ask about reimbursement of ATM fees with your brokerage account).

Both accounts allow bill pay and autopay.

So I'm trying to see the advantage of a Fidelity CMA over a standard brokerage account. It seems to me that you'd come out ahead with the brokerage account because your core account would be earning about 2% versus the CMA sweep account of something like 0.10%.

Have others used a Fidelity brokerage account as their de facto checking account with autopay and bill pay features?
From CMA you can set up overdraft protection to liquidate brokerage money market automatically (in theory, i haven't been able to do it yet, brokerage doesn't show up as funding account for some reason)
And the only benefit of this setup compared to just using brokerage is:
- Free ATM.
- Some separation from your investment account.

If you don't care about the second point, alternatively you could open a CMA and move money there from brokerage only when you do ATM withdrawals.
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Re: Discontinuing VanguardAdvantage Accounts

Post by indexfundfan » Fri Mar 01, 2019 4:05 pm

Artsdoctor wrote:
Fri Mar 01, 2019 3:13 pm
This is exactly what I'm trying to dissect. I just spoke with my Fidelity customer service representative about the differences between a Fidelity Cash Management Account and a routine Fidelity brokerage account.

The Fidelity CMA sweep account is the only one you can use and this pays an insignificant amount of interest. If you use your Fidelity brokerage account, you can choose between core funds that pay about the same as your Vanguard Federal Money Market account (the settlement fund at Vanguard).

You can get your checks and your ATM at both types of accounts (although I didn't ask about reimbursement of ATM fees with your brokerage account).

Both accounts allow bill pay and autopay.

So I'm trying to see the advantage of a Fidelity CMA over a standard brokerage account. It seems to me that you'd come out ahead with the brokerage account because your core account would be earning about 2% versus the CMA sweep account of something like 0.10%.

Have others used a Fidelity brokerage account as their de facto checking account with autopay and bill pay features?
You can hold Fidelity's MMF in the CMA to earn a market interest rate (>2%). All Fidelity MMF held in the CMA will be automatically liquidated to meet debits in the CMA.

The caveat is that you have to manually purchase the MMF in the CMA since it is not available as a sweep fund.

With the demise of the Vanguard Advantage account, my plan is to use a combination of the Fidelity CMA and IA (investment account aka brokerage) as follows:

○ ACH debit : IA
○ ACH credit : IA
○ ATM : CMA
○ Billpay : IA
○ Checks : IA

I need not hold any money in the CMA since it will overdraft automatically (no fee) from the IA when using the ATM card.
My signature has been deleted.

PatrickA5
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Re: Discontinuing VanguardAdvantage Accounts

Post by PatrickA5 » Fri Mar 01, 2019 4:16 pm

heartwood wrote:
Fri Mar 01, 2019 2:46 pm
criticalmass wrote:
Fri Mar 01, 2019 2:18 pm
sleepysurf wrote:
Thu Feb 28, 2019 12:40 pm
Hah! I also JUST transitioned to VanguardAdvantage, and spent yesterday evening setting up all my BillPay accounts, and deleting them at Bank of America. Not happy! :(

I agree they seem to be driving away their higher net worth clients. I even transferred my DAF from Vanguard to Fidelity last year, as the Fidelity plan allows grants as little as $50.
The bigger question is, how many higher net worth clients use Advantage services? Likely, not many. Vanguard knows the answer, and it's clearly not nearly enough to justify offering the service to them. Perhaps BNY Mellon (the actual banking provider) raised their fees too. But hopefully this means that resources drained on Advantage can be put to good use in Vanguard's core product.
define "higher net worth clients" and you might get some meaningful responses.
I imagine VG would consider 8 digit accounts as high net worth. We're far from that and will never be close. VG has done their DD on this and have determined that it's not worth continuing.

I remember setting the Advantage account up a few years ago. NOBODY could answer even the simplest questions. After numerous phone calls, my Flagship guy finally was able to answer my questions. That experience told me that they don't promote the product.

PatrickA5
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by PatrickA5 » Fri Mar 01, 2019 4:26 pm

I sent my Flagship rep an email venting our displeasure with the announcement. To their credit, I got a call back within an hour of the email. She apologized and was very nice. Of course, no mention of having something better down the road.

But, after discussing the option of check writing on my Prime Money Market account, it might be all we need. We never did bill paying or use the debit card that came with the Advantage account, so other than a $250 check minimum I think we'll get the same benefit we had before. We will continue to use our local bank for just about everything (free) and will continue to use VG PMM for the occasional large check and a place to store cash with a good interest rate.

I might still look into the Fidelity CMA, just to give them a shot and see how the service is. I still like the idea of a local office for my wife and kids to go to when I'm gone.

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Artsdoctor
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by Artsdoctor » Fri Mar 01, 2019 4:34 pm

So it sounds like using a Fidelity brokerage account will accomplish everything that the Vanguard Advantage did. If you want an ATM card, then you can go with the Cash Management Account. Some people might like to have a checking account separate from an investment account so in theory, the CMA might be attractive to them although you could easily just open up a separate brokerage account.

Fidelity told me that they would not encourage having debits to a sweep account that would need to be manually funded from another (higher yielding) money market fund. They would DO it (think of it as overdraft protection) but if it's a habitual problem, you'll probably hear about it.

So to me, the CMA gives you virtually no interest whereas the brokerage account can have a core fund as the "sweep" account which would yield > 2%. Something like SPAXX at Fidelity will yield about 2.05% compared to the Federal Money Market settlement fund at Vanguard yielding about 2.35%. Both have greater than 50% treasuries so you can get a bit of a break on your California tax return if that's applicable to you.

So unless you really want a debit card, using the brokerage account would be the clear winner, especially if you're moving a lot of money in and out of the account for banking purposes.

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DueDiligence
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Re: Discontinuing VanguardAdvantage Accounts

Post by DueDiligence » Fri Mar 01, 2019 4:52 pm

Artsdoctor wrote:
Fri Mar 01, 2019 3:13 pm

Have others used a Fidelity brokerage account as their de facto checking account with autopay and bill pay features?
Have had checkwriting on Fidelity brokerage taxable account since they converted our mutual fund account to brokerage account mid-1990.
Has worked well as our secondary checking account, originally paper checks, now mostly ACH.
We use it to autopay our Fidelity Visa.
We use a "real" bank for bill-pay, other autopay, and most checking.
Seems like Fidelity should work fine for bill-pay also.
Not aware of any advantage of CMA compared to checkwriting on brokerage settlement fund (SPAXX for us).
DD
"Personal preferences, circumstances, and abilities affect portfolio construction in a profound manner..." David Swensen

Gadget
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by Gadget » Fri Mar 01, 2019 4:52 pm

Artsdoctor wrote:
Fri Mar 01, 2019 4:34 pm
So it sounds like using a Fidelity brokerage account will accomplish everything that the Vanguard Advantage did. If you want an ATM card, then you can go with the Cash Management Account. Some people might like to have a checking account separate from an investment account so in theory, the CMA might be attractive to them although you could easily just open up a separate brokerage account.

Fidelity told me that they would not encourage having debits to a sweep account that would need to be manually funded from another (higher yielding) money market fund. They would DO it (think of it as overdraft protection) but if it's a habitual problem, you'll probably hear about it.

So to me, the CMA gives you virtually no interest whereas the brokerage account can have a core fund as the "sweep" account which would yield > 2%. Something like SPAXX at Fidelity will yield about 2.05% compared to the Federal Money Market settlement fund at Vanguard yielding about 2.35%. Both have greater than 50% treasuries so you can get a bit of a break on your California tax return if that's applicable to you.

So unless you really want a debit card, using the brokerage account would be the clear winner, especially if you're moving a lot of money in and out of the account for banking purposes.
A lot of people, myself included keep 0 dollars in the CMA account. All money goes into Brokerage account that is used as overdraft protection for the CMA account. It has a better core sweep fund, (SPAXX) even though I buy FZDXX when I remember.

I can confirm that the ATM works from CMA even with 0 in the CMA. Overdraft works instantly.

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by asset_chaos » Fri Mar 01, 2019 4:57 pm

MisterMister wrote:
Fri Mar 01, 2019 11:53 am
ClevrChico wrote:
Thu Feb 28, 2019 11:18 pm
The simple solution is to get an online checking account with Ally or similar institution. They may even offer some advantages. It's really an hour or two of effort to get things switched over.
Yes, a lot of Boglers like Ally (I use it also).
Ironically bad Ally service is exactly the reason I opened an advantage account. 6 or 7 years ago Ally rejigged their bill pay, which caused my credit card auto pay to not happen, which resulted in a late fee and interest. Ally washed their hands of the entire thing when I asked them to reimburse the late fee they'd caused me to accrue. The customer service interactions got downright rude when I asked to be put in contact with people higher up the command chain.
Regards, | | Guy

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by MisterMister » Fri Mar 01, 2019 5:01 pm

asset_chaos wrote:
Fri Mar 01, 2019 4:57 pm
MisterMister wrote:
Fri Mar 01, 2019 11:53 am
ClevrChico wrote:
Thu Feb 28, 2019 11:18 pm
The simple solution is to get an online checking account with Ally or similar institution. They may even offer some advantages. It's really an hour or two of effort to get things switched over.
Yes, a lot of Boglers like Ally (I use it also).
Ironically bad Ally service is exactly the reason I opened an advantage account. 6 or 7 years ago Ally rejigged their bill pay, which caused my credit card auto pay to not happen, which resulted in a late fee and interest. Ally washed their hands of the entire thing when I asked them to reimburse the late fee they'd caused me to accrue. The customer service interactions got downright rude when I asked to be put in contact with people higher up the command chain.
Wow, that's unfortunate. I've never used their bill pay as my checking account is not with them. In all honesty I've not had the need much for their customer service as about everything can be done through their Web interface. Good to know.

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DueDiligence
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by DueDiligence » Fri Mar 01, 2019 5:17 pm

Artsdoctor wrote:
Fri Mar 01, 2019 4:34 pm
So unless you really want a debit card, using the brokerage account would be the clear winner, especially if you're moving a lot of money in and out of the account for banking purposes.
Did not mention it earlier, but we have a Fidelity debit card associated with our brokerage account (no CMA).
DD
"Personal preferences, circumstances, and abilities affect portfolio construction in a profound manner..." David Swensen

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by mervinj7 » Fri Mar 01, 2019 5:36 pm

Artsdoctor wrote:
Fri Mar 01, 2019 4:34 pm
So to me, the CMA gives you virtually no interest whereas the brokerage account can have a core fund as the "sweep" account which would yield > 2%. Something like SPAXX at Fidelity will yield about 2.05% compared to the Federal Money Market settlement fund at Vanguard yielding about 2.35%. Both have greater than 50% treasuries so you can get a bit of a break on your California tax return if that's applicable to you.

So unless you really want a debit card, using the brokerage account would be the clear winner, especially if you're moving a lot of money in and out of the account for banking purposes.
In the CMA, we keep 1 month's expenses in FDLXX (Treasury Only Money Market) since all interest is excluded from CA state tax. Current yield is 1.99%. Tax Equivalent Yield (TEY) for us is 2.27% assuming Fed Rate of 24% and CA rate of 9.3%. The CORE sweep position rarely has much money since its debited first for ATM withdrawal, transfers, billpay, checkwriting etc. ATM fees are refunded worldwide with the CMA. They are not with the brokerage account.

Our EF is also in the CMA but we use a ladder of 6-month Treasury bills. Again, no CA state tax on interest. Current yield is 2.52%. TEY is 2.88%. I also use T-bills for known large expenditures in the future. For example, I can set aside $10k in 3 month T-bill for an upcoming property tax bill due in 3 months.

Thus, my overall TEY in my CMA is (2.88*6+2.27)/7= 2.79% which is definitely more than zero.

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by jdb » Fri Mar 01, 2019 5:48 pm

I am surprised at all the angst. My flagship select rep called me today to advise. I told him that never used and would not miss it, I shredded all my Vanguard checks last year. Don’t want a checking account tied to my Vanguard accounts for security reasons. Prefer to keep my checking accounts at banks at low enough amounts that not a security concern. Never opened debit card. Both of our checking accounts at Citi and BofA have great bill pay online systems, and easy to ACH monies from Vanguard to banks within day or two when needed. Only reason need debit cards is to access cash at ATM. I like Vanguard for their mutual fund portfolio, almost all of our monies at Vanguard, but much rather do my banking transactions with regular banks. Good luck.
Last edited by jdb on Fri Mar 01, 2019 5:52 pm, edited 1 time in total.

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by indexfundfan » Fri Mar 01, 2019 5:50 pm

I'm surprised to receive a secure message from Vanguard. And I haven't even contacted them regarding this.

Hello indexfundfan:

As you may already know, Vanguard recently advised clients that their
VanguardAdvantage account will be discontinued on July 31, 2019.

If you have any questions or would like to discuss this information in more
detail, you can contact me directly by phone or email using the information
provided below.

You can also schedule an appointment for me to call you. To do so, log on
to your account and on the right side of the page select “Create/edit
appointment” to view my calendar.

We appreciate your understanding regarding this decision. Thank you for
being part of the Vanguard community of investors.

Best regards,
My signature has been deleted.

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by xb7 » Fri Mar 01, 2019 7:00 pm

It seems like folks are leaning in general towards switching to Fidelity, or to going with a bank like Ally and keeping investments at Vanguard. When I first started reading about this stuff yesterday, Fidelity was looking good; I'm leaning now towards opening an Ally account and staying with Vanguard.

Yes, the Fidelity approach is a one-stop-shop, with I guess both potential upsides and downsides. Upside is all the money is right there and much/most stuff could be done sort of automatically, plus a ~local office, debit card that's nice to have for foreign travel ... etc.
One downside is the same as an upside: the money is all there --- I do agree that it's nice to think there's more of a barrier between the bulk of my assets and my general bill paying. I never wanted a Vanguard debit card for that reason, and unless I made things more complicated with a bit of a shell game perhaps inside of Fidelity, I would be in the same situation.

The thing that has me leaning now towards the Ally approach is that I have open ended Vanguard mutual funds, and as I understand it, if I switched to Fidelity I might (would?) incur additional fees to keep Vanguard open end funds there, or if I were to convert them to ETFs (with all the benefits/costs associated with that) I would pay brokerage commissions every time I wanted to rebalance. Switching to Fidelity index funds is unappealing for at least some funds due to accumulated capital gains. And the whole CMA/core thing and figuring out which funds to use and the yield hit on the brokerage MM fund vs. either Vanguard or Ally savings --- Fidelity seems to have some complexity and issues too.

What's making sense to me at this point is to keep a fair chunk of cash in Ally savings and another fair chunk in Vanguard's money market fund and send a TBD amount of money monthly from the latter to Ally checking --- then pay just a few credit cards via ACH from savings and more predictable expenses from checking.
OR, just keep the bulk of my cash in Ally savings --- meaning I have to stay on top of what accumulates in Vanguard and periodically move some? And then transfer from there once a month a regular amount to checking for the predictable expenses (utility bills, insurance payments, etc) that I can't pay with credit card.

One other benefit of this approach is that it's a smaller overall change, I think --- less disruptive, less things to learn. And I just (still) trust Vanguard to not try to squeeze extra money out of me in the way the more typical for-profit financial companies often seem to do.

I reckon I'll wait a few days and continue to chew on this; reading about other people's experiences and thoughts are very helpful, so thanks to all who are participating here!

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by MnD » Fri Mar 01, 2019 8:33 pm

A plain vanilla Schwab One account, (which is the default brokerage account) offers checks, debit card, bill pay, any and all ATM fee reimbursements, a routing number and account number you can utilize for pull autopays, no minimums ect. The cash sweep is FDIC .33% so you do need to be aware of your cash balances and utilize Schwab MM Prime at 2.33% as warranted. Schwab One accounts have been around for a very very long time.
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by boglesmind » Fri Mar 01, 2019 10:10 pm

xb7 wrote:
Fri Mar 01, 2019 7:00 pm
...
One downside is the same as an upside: the money is all there --- I do agree that it's nice to think there's more of a barrier between the bulk of my assets and my general bill paying. I never wanted a Vanguard debit card for that reason, and unless I made things more complicated with a bit of a shell game perhaps inside of Fidelity, I would be in the same situation.
...
This is exactly the same concern that my friends and I had. We discussed it at length and concluded that the "convenience" of keeping all funds at one bank/brokerage/whatever and using bill pay etc from the same place is too risky. We all have separate "checking accounts" dedicated for bill payments (one acct for small bills like gardener/house cleaner and another for larger payments like taxes). These accounts have just enough balance to cover the checks + minimum balance requirements. We do ACH transfers from our respective Fidelity/Schwab/Vanguard/whatever MM accounts once a month or when needed to meet the bills. We don't use the bill pay feature of any of these brokerages.

Sure it's more work but we anyway spend time checking credit card statements and utility bills and it's just few more minutes to transfer the needed amounts from brokerage MM acct to bank/credit union checking acct. It also forces us to check the accts and bills at least once a month and not rely on auto pilot. YMMV.

Boglesmind

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by boglesmind » Fri Mar 01, 2019 10:12 pm

jdb wrote:
Fri Mar 01, 2019 5:48 pm
I am surprised at all the angst. My flagship select rep called me today to advise. I told him that never used and would not miss it, I shredded all my Vanguard checks last year. Don’t want a checking account tied to my Vanguard accounts for security reasons. Prefer to keep my checking accounts at banks at low enough amounts that not a security concern. Never opened debit card. Both of our checking accounts at Citi and BofA have great bill pay online systems, and easy to ACH monies from Vanguard to banks within day or two when needed. Only reason need debit cards is to access cash at ATM. I like Vanguard for their mutual fund portfolio, almost all of our monies at Vanguard, but much rather do my banking transactions with regular banks. Good luck.
+1

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by Sage16 » Fri Mar 01, 2019 10:59 pm

I still find the need to maintain a relationship with a local bank for the occasional medallion signature guarantee, cashier's check, wire transfer and a safety deposit box. An online only bank can't do all of that and I do have a requirement for those services from time to time. I manage all my banking transactions with the bank and have my checking account linked to my Vanguard account to transfer funds back and forth. I also have a Vanguard Advantage account (billpay, debit card and checks) as a backup to my bank. I have never used the features of the Advantage account but fear that if my bank ever runs into a problem internally or externally caused that results in the bank shutting down for days or weeks to sort through and recover at least my Advantage account would allow me to continue to financially function. The advantage account allowed me to leverage an existing financial relationship without adding to the complexity and adding another one in. I have no plans to move away from Vanguard so I now will need to rethink my backup bank requirements.
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Post by AlphaLess » Fri Mar 01, 2019 11:01 pm

bhwabeck3533 wrote:
Thu Feb 28, 2019 10:30 am
I was disappointed to get a notice today that Vanguard is discontinuing their VanguardAdvantage Account. The "press release" provides guidance to transition, and there is no replacement product being offered.

It's new info, but I'm looking for a recommended alternative when my account goes away on 7/31/2019.
Seems like Vanguard is going in certain direction: reduce activities that are not related to asset management.
"A Republic, if you can keep it". Benjamin Franklin. 1787. | Party affiliation: Vanguard. Religion: low-cost investing.

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by William4u » Sat Mar 02, 2019 12:52 am

Gadget wrote:
Fri Mar 01, 2019 4:52 pm
Artsdoctor wrote:
Fri Mar 01, 2019 4:34 pm
So it sounds like using a Fidelity brokerage account will accomplish everything that the Vanguard Advantage did. If you want an ATM card, then you can go with the Cash Management Account. Some people might like to have a checking account separate from an investment account so in theory, the CMA might be attractive to them although you could easily just open up a separate brokerage account.

Fidelity told me that they would not encourage having debits to a sweep account that would need to be manually funded from another (higher yielding) money market fund. They would DO it (think of it as overdraft protection) but if it's a habitual problem, you'll probably hear about it.

So to me, the CMA gives you virtually no interest whereas the brokerage account can have a core fund as the "sweep" account which would yield > 2%. Something like SPAXX at Fidelity will yield about 2.05% compared to the Federal Money Market settlement fund at Vanguard yielding about 2.35%. Both have greater than 50% treasuries so you can get a bit of a break on your California tax return if that's applicable to you.

So unless you really want a debit card, using the brokerage account would be the clear winner, especially if you're moving a lot of money in and out of the account for banking purposes.
A lot of people, myself included keep 0 dollars in the CMA account. All money goes into Brokerage account that is used as overdraft protection for the CMA account. It has a better core sweep fund, (SPAXX) even though I buy FZDXX when I remember.

I can confirm that the ATM works from CMA even with 0 in the CMA. Overdraft works instantly.
This "auto-overdraft" (that can "overdraft" 1000x a month with no problems) is what I loved about the VanguardAdvantage account and Fidelity CMA. The Vanguard Federal MM fund was both a checking and MM account at the same time (so "auto-overdraft" from MM to checking is built in obviously). I could deposit, do billpay/autopay, and write checks from Vanguard Fed MM.

I also have the Fidelity CMA and it is like half a VanguardAdvantage account. Fidelity lets you essentially pay bills from your MM account (since it auto-sweeps without limits into your $0 CMA account to pay for ATM withdrawals, checks, billpay, etc.) but you need to remember to constantly go to Fidelity.com and transfer money into the MM from the CMA account when you have an check, ACH, or direct deposit go into the account (VanguardAdvantage avoided the latter disadvantage of a Fidelity CMA).

It looks like (from the little I've read) that the Schwab account is not as good as the Fidelity CMA on this.

I'm upset about what Vanguard is doing here. I'm very upset.

But at least Fidelity CMA is an adequate replacement that is much better than having a regular bank account (where I would need to keep a large amount in my checking and then constantly balance between checking and MM/Savings to cover bills/checks while also maximizing interest AND avoiding Regulation D problems with the 6 withdrawal monthly limit). Fidelity has a higher rate than any bank. But Fidelity has a lower interest rate than Vanguard MM Prime or MM Fed (and Fidelity MM Prime might run into troubles with the new Federal Rules on Prime MM Funds which the Fed MM fixes) and you can't deposit checks, ACH, and direct deposits straight into the Fidelity MM.

Basically all this means I will be moving a significant amount of money from Vanguard to Fidelity, and I will need to "tend" my CMA account much more per month than my VanguardAdvantage account, I will be getting a lower rate, and I will be buying more Fidelity Index Funds instead of Vanguard Index Funds.

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by smectym » Sat Mar 02, 2019 2:09 am

jpsfranks wrote:
Fri Mar 01, 2019 2:02 pm
iamblessed wrote:
Fri Mar 01, 2019 12:57 pm
How long has Fidelity had this CMA account?
I don't know exactly when they started it but I have had a cash account since 2007 (I think then it was branded a "mySmartCash" account). Fidelity has supported various checking functions out of normal brokerage accounts for much longer than that.
It’s been around “forever” at least in one form or another back to the Pleistocene (i.e. 1980’s). At that time Merrill Lynch had a “cash management account” minimum investment $20,000. Fidelity came in with their competitive offering, lower minimum

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Post by arf30 » Sat Mar 02, 2019 7:44 am

A CMA makes life easy for ETF investors. Get your direct deposits, pay the bills, then invest any extra. Without it you have to use that clunky transfer tool to pull money from your bank, check a few days later that it's there, then buy and have a bunch of money left over in the settlement fund.

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by Gadget » Sat Mar 02, 2019 8:19 am

William4u wrote:
Sat Mar 02, 2019 12:52 am
Gadget wrote:
Fri Mar 01, 2019 4:52 pm
Artsdoctor wrote:
Fri Mar 01, 2019 4:34 pm
So it sounds like using a Fidelity brokerage account will accomplish everything that the Vanguard Advantage did. If you want an ATM card, then you can go with the Cash Management Account. Some people might like to have a checking account separate from an investment account so in theory, the CMA might be attractive to them although you could easily just open up a separate brokerage account.

Fidelity told me that they would not encourage having debits to a sweep account that would need to be manually funded from another (higher yielding) money market fund. They would DO it (think of it as overdraft protection) but if it's a habitual problem, you'll probably hear about it.

So to me, the CMA gives you virtually no interest whereas the brokerage account can have a core fund as the "sweep" account which would yield > 2%. Something like SPAXX at Fidelity will yield about 2.05% compared to the Federal Money Market settlement fund at Vanguard yielding about 2.35%. Both have greater than 50% treasuries so you can get a bit of a break on your California tax return if that's applicable to you.

So unless you really want a debit card, using the brokerage account would be the clear winner, especially if you're moving a lot of money in and out of the account for banking purposes.
A lot of people, myself included keep 0 dollars in the CMA account. All money goes into Brokerage account that is used as overdraft protection for the CMA account. It has a better core sweep fund, (SPAXX) even though I buy FZDXX when I remember.

I can confirm that the ATM works from CMA even with 0 in the CMA. Overdraft works instantly.
This "auto-overdraft" (that can "overdraft" 1000x a month with no problems) is what I loved about the VanguardAdvantage account and Fidelity CMA. The Vanguard Federal MM fund was both a checking and MM account at the same time (so "auto-overdraft" from MM to checking is built in obviously). I could deposit, do billpay/autopay, and write checks from Vanguard Fed MM.

I also have the Fidelity CMA and it is like half a VanguardAdvantage account. Fidelity lets you essentially pay bills from your MM account (since it auto-sweeps without limits into your $0 CMA account to pay for ATM withdrawals, checks, billpay, etc.) but you need to remember to constantly go to Fidelity.com and transfer money into the MM from the CMA account when you have an check, ACH, or direct deposit go into the account (VanguardAdvantage avoided the latter disadvantage of a Fidelity CMA).

It looks like (from the little I've read) that the Schwab account is not as good as the Fidelity CMA on this.

I'm upset about what Vanguard is doing here. I'm very upset.

But at least Fidelity CMA is an adequate replacement that is much better than having a regular bank account (where I would need to keep a large amount in my checking and then constantly balance between checking and MM/Savings to cover bills/checks while also maximizing interest AND avoiding Regulation D problems with the 6 withdrawal monthly limit). Fidelity has a higher rate than any bank. But Fidelity has a lower interest rate than Vanguard MM Prime or MM Fed (and Fidelity MM Prime might run into troubles with the new Federal Rules on Prime MM Funds which the Fed MM fixes) and you can't deposit checks, ACH, and direct deposits straight into the Fidelity MM.

Basically all this means I will be moving a significant amount of money from Vanguard to Fidelity, and I will need to "tend" my CMA account much more per month than my VanguardAdvantage account, I will be getting a lower rate, and I will be buying more Fidelity Index Funds instead of Vanguard Index Funds.
Maybe I'm not understanding your concern, but I don't see how Fidelity CMA is different than Vanguard Advantage (other than lower rates). I direct deposit my paychecks into a Brokerage account I named "Savings". $0 gets deposited in the CMA account. Any deposits into "Savings" automatically go to the core fund SPAXX. All debits come from the CMA account which has no money in it, but autodraft protection to "Savings". If I want to log in to Fidelity, I can buy FZDXX instead of SPAXX in my "Savings" account. Most people probably buy SPRXX instead of FZDXX, but the point is that you don't HAVE to log in and purchase anything as long as you're fine with the SPAXX rate.

In other words, you can set it up where Fidelity CMA can be a no effort checking account with the SPAXX rate. Or with minimal effort, you can buy into FZDXX or SPRXX when you get direct deposits.

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Post by Artsdoctor » Sat Mar 02, 2019 9:22 am

Maybe I misunderstood the Fidelity representative or perhaps I'm not following the posts above regarding Fidelity.

When you have the Fidelity CMA, you must use a sweep account which earns virtually no interest. Now, you can have a concomitant feeder fund, such as a higher-yielding money market, which you'll be transferring into the sweep account periodically. But if you're interested in keeping things simple, you're not going to want to continually feed the sweep account as you're writing checks and having bills paid automatically; that's too much work for me. Additionally, the representative told me if your checks and autopays are higher than the balance in the sweep account, they will manually extract the funds from your higher-yielding money market account to cover those debits, but they don't encourage that behavior (presumably because it's work for them).

In order to have a higher-yielding money market account functioning as a sweep or core account, you'd have to set up your brokerage account for checkwriting and billpay. Since I'm not particularly concerned about having an ATM card, it seems that this is the best option for me. If there's something that the CMA offers that the brokerage account does not, I haven't found it (aside from the free debit card perhaps).

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Post by zrail » Sat Mar 02, 2019 9:31 am

A Fidelity CMA is an ordinary brokerage account with an FDIC-insured core position and debit card refunds. That’s it.

Fidelity will automatically sell money market positions within a brokerage account (any brokerage account) to satisfy purchases or withdrawals. This means that you can purchase a money market fund within your CMA, keep nothing i the FDIC core position, and have withdrawals automatically come out of that money market fund.

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Post by stan1 » Sat Mar 02, 2019 9:52 am

Alarms going off at Fidelity: Vanguard is sending over some high cost, low revenue customers. &^*&%^*&*^!! they got us again.

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Post by MisterMister » Sat Mar 02, 2019 10:03 am

stan1 wrote:
Sat Mar 02, 2019 9:52 am
Alarms going off at Fidelity: Vanguard is sending over some high cost, low revenue customers. &^*&%^*&*^!! they got us again.
That's funny! I bet Fidelity does indeed loathe Vanguard!

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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by Sheepdog » Sat Mar 02, 2019 10:09 am

boglesmind wrote:
Fri Mar 01, 2019 10:12 pm
jdb wrote:
Fri Mar 01, 2019 5:48 pm
I am surprised at all the angst. My flagship select rep called me today to advise. I told him that never used and would not miss it, I shredded all my Vanguard checks last year. Don’t want a checking account tied to my Vanguard accounts for security reasons. Prefer to keep my checking accounts at banks at low enough amounts that not a security concern. Never opened debit card. Both of our checking accounts at Citi and BofA have great bill pay online systems, and easy to ACH monies from Vanguard to banks within day or two when needed. Only reason need debit cards is to access cash at ATM. I like Vanguard for their mutual fund portfolio, almost all of our monies at Vanguard, but much rather do my banking transactions with regular banks. Good luck.
+1
+2 Although I do write checks from my money market account at Vanguard for special large purchases.
Last edited by Sheepdog on Sat Mar 02, 2019 10:15 am, edited 1 time in total.
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Post by Doc » Sat Mar 02, 2019 10:11 am

Artsdoctor wrote:
Sat Mar 02, 2019 9:22 am
But if you're interested in keeping things simple, you're not going to want to continually feed the sweep account as you're writing checks and having bills paid automatically; that's too much work for me.
Get a investment tool like Quicken and look at an account balance chart like this every now and then.

Imagetd bank and hours

Alternatives to Quicken: https://clubthrifty.com/best-quicken-alternatives/ (Some of them are free.)
A scientist looks for THE answer to a problem, an engineer looks for AN answer and lawyers ONLY have opinions. Investing is not a science.

Snapper
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Post by Snapper » Sat Mar 02, 2019 10:26 am

My Flagship rep called with a two pronged attack. Advantage is dead and I should sign up for PAS. I told him this seemed to be going a cross purposes as Vanguard was eliminating the possibility of being a one stop solution, then pitching PAS as a one stop solution. That idea seemed to surprise him.

I did get the clear impression there would be no new Advantage account. Considering how often I hear from him about PAS maybe they will offer one for PAS clients only!

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Artsdoctor
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Post by Artsdoctor » Sat Mar 02, 2019 10:41 am

zrail wrote:
Sat Mar 02, 2019 9:31 am
A Fidelity CMA is an ordinary brokerage account with an FDIC-insured core position and debit card refunds. That’s it.

Fidelity will automatically sell money market positions within a brokerage account (any brokerage account) to satisfy purchases or withdrawals. This means that you can purchase a money market fund within your CMA, keep nothing i the FDIC core position, and have withdrawals automatically come out of that money market fund.
I think this is where I was tripped up by the Fidelity representative, and probably where the miscommunication is coming from above. I was told that the CMA sweep account could be funded by your co-existing higher-yielding money market account but that they discouraged this on a routine basis. The reason why is that it required a manually override on their end. Perhaps this was over-emphasized by the representative.

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whodidntante
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Post by whodidntante » Sat Mar 02, 2019 10:42 am

This is no problem. Simply call Vanguard customer service and inform them that you own the company and they are mistaken, or whatever supposed customer advantages the nonprofit structure has.

mptfan
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Post by mptfan » Sat Mar 02, 2019 10:53 am

whodidntante wrote:
Sat Mar 02, 2019 10:42 am
This is no problem. Simply call Vanguard customer service and inform them that you own the company and they are mistaken, or whatever supposed customer advantages the nonprofit structure has.
:D This is one of the funniest things I've read on this forum in a while.

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whodidntante
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Re: Vanguard is Discontinuing their VanguardAdvantage Accounts]

Post by whodidntante » Sat Mar 02, 2019 11:03 am

iamblessed wrote:
Fri Mar 01, 2019 12:57 pm
How long has Fidelity had this CMA account?
I've had a CMA account for years and transitioned to using it as my primary "checking" account during January 2017. I am very pleased. But why does that matter? I guess the main concern is how long Fidelity is going to have it, which is longer than Vanguard.

Here's an old thread I started about it. SPRXX is paying 2.26% now.
viewtopic.php?t=209884

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