Checkwriting money market fund at Vanguard

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interwebopinion
Posts: 71
Joined: Thu Aug 13, 2020 6:21 pm

Checkwriting money market fund at Vanguard

Post by interwebopinion »

One of the upcoming changes to the Prime Money Market fund is the removal of checkwriting privileges. We write occasional checks from our Prime MM account, and want to keep that option.

What MM funds at Vanguard would you recommend that have checkwriting? And assuming we switch, would we need to get new checkbooks?

:confused
shuresm7b1
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Joined: Mon Aug 08, 2016 5:28 am

Re: Checkwriting money market fund at Vanguard

Post by shuresm7b1 »

I went to federal mmf and requested new checks

https://investor.vanguard.com/mutual-fu ... file/VMFXX
Topic Author
interwebopinion
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Re: Checkwriting money market fund at Vanguard

Post by interwebopinion »

This is useful!
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Duckie
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Re: Checkwriting money market fund at Vanguard

Post by Duckie »

interwebopinion wrote:One of the upcoming changes to the Prime Money Market fund is the removal of checkwriting privileges. We write occasional checks from our Prime MM account, and want to keep that option.

What MM funds at Vanguard would you recommend that have checkwriting?
I recommend Federal Money Market.
And assuming we switch, would we need to get new checkbooks?
Are you on the mutual fund side or the brokerage side of Vanguard? I am on the brokerage side and the checks are generic. They don't list the fund, just "Vanguard Brokerage Services Account". Since Federal MM is the settlement fund any check withdrawals come out of that fund first and then an alternate choice. Prime MM was my alternate choice but that's been discontinued.

If you are on the mutual fund side and the checks specifically say "Prime Money Market Fund" then you will need to get new checks.
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dratkinson
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Re: Checkwriting money market fund at Vanguard

Post by dratkinson »

For now I still have the ability to write checks on VMSXX (municipal mmkt). Knock wood.

But have only done so to give gifts, when I was trying to encourage new graduates to begin investing early.

My real checking account is at a real bank, and they play fewer games than Vanguard. Knock wood.
d.r.a., not dr.a. | I'm a novice investor, you are forewarned.
stan1
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Re: Checkwriting money market fund at Vanguard

Post by stan1 »

I think the handwriting is on the wall. Vanguard would prefer you ACH funds to a bank (or credit union) to write a check. Have to assume it is cheaper for them to process an ACH transfer than to process a check. It may be a slow death but I'd continue to expect Vanguard checkwriting benefits to decrease. Now that banks (credit unions) likely have better cash rates than a Vanguard money market fund there's even more reason to use a bank/credit union for cash not Vanguard.
sport
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Re: Checkwriting money market fund at Vanguard

Post by sport »

stan1 wrote: Mon Sep 07, 2020 11:36 am I think the handwriting is on the wall. Vanguard would prefer you ACH funds to a bank (or credit union) to write a check. Have to assume it is cheaper for them to process an ACH transfer than to process a check. It may be a slow death but I'd continue to expect Vanguard checkwriting benefits to decrease. Now that banks (credit unions) likely have better cash rates than a Vanguard money market fund there's even more reason to use a bank/credit union for cash not Vanguard.
If you want to make a QCD donation, it must be by paper check from your IRA. So, either you write one on your MM fund in the IRA, or Vanguard has to write one on paper and mail it to you via the USPS. So, discontinuing all checkwriting would be more expensive for Vanguard. If you want to use your bank for this, you have to have a checking account in a bank IRA if that is even possible.
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