Cash App linked to Vanguard Brokerage to pay bills

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Gotrocks
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Cash App linked to Vanguard Brokerage to pay bills

Post by Gotrocks »

Good day! I am looking for a cash management solution to pay a small dollar amount of bills monthly. I tried linking to PayPal but was flagged for fraud by Vanguard. Vanguard called and explained to me that PayPal doesn’t allow the linking. I am now attempting to link the Cash App. Is this a good idea or will they flag this for fraud too? Do I really have to open another bank account just to pay a $10 a month credit card bill? Thanks for your help with this!
runner3081
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by runner3081 »

Can you use Zelle?

Or, maybe your bill-pay service with the bank?
Topic Author
Gotrocks
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by Gotrocks »

Those are good points but I am trying to avoid setting up a separate bank account. Ideally I would be able to just have the credit card payment debited from a Vanguard Brokerage account but this doesn’t seem to be possible. I have looked at other nonbank services but they all seem to come with fees.
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Kenkat
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by Kenkat »

You might look into Schwab. They offer a brokerage account with a bank account option which will allow you to write checks, do ACH, etc.
Topic Author
Gotrocks
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by Gotrocks »

I like the Schwab idea and it is currently at the top of my list. I just want to make sure I am not missing something with a setup at Vanguard and think there must be another way other than having two brokerage accounts or having to setup another bank account.
cowbman
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by cowbman »

Vanguard has been really cutting back on their checking ability. If you just want one account I agree with any of the options included such as Schwab. I myself prefer Fidelity because of (usually) higher interest rates and free wires.
Nummerkins
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by Nummerkins »

Vanguard will not work how you want. Its meant for direct deposit and outgoing checks only, not ACH pulls.

Fidelity CMA will and Schwab has their own bank. Both have built in bill pay as well.
Last edited by Nummerkins on Mon Sep 07, 2020 1:05 pm, edited 1 time in total.
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arf30
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by arf30 »

Look at Fidelity or Schwab, Vanguard doesn't do cash management accounts anymore.
Topic Author
Gotrocks
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by Gotrocks »

I do think Fidelity is a good option also as well as Interactive Brokers. I have used a couple of these accounts in the past but often find myself getting tempted to trade when utilizing them. I was hoping to find a cash management option that wasn’t a brokerage or a bank but it sounds like I am out of luck. I just wanted to be sure I was not missing something that would function as a bolt on cash management option to a Vanguard account. Thanks for all the help and ideas!
sycamore
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by sycamore »

Gotrocks wrote: Mon Sep 07, 2020 11:49 am ...
Do I really have to open another bank account just to pay a $10 a month credit card bill?
Gotrocks, in a later post you said you didn't want to open a separate bank account, but above you say another bank account. So it's not clear if you have a bank (or credit union) account at all. If you don't have one, I'm curious why not? How do you pay your regular bills like rent/mortgage, utilities, insurance, etc.
Topic Author
Gotrocks
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by Gotrocks »

I do have accounts at both the places you mentioned to pay the items you mentioned. I was hoping Vanguard would be a single solution or that Vanguard and a cash management app would work to eventually meet all my needs. I understand Vanguard isn’t a bank and it appears the best brokerages that offer what I am looking for have already been mentioned. I was just posting to see if I was missing something.
epargnant
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by epargnant »

Reading this & your other post.

viewtopic.php?f=2&t=325166&p=5487880#p5487880

I love Vanguard & so far prefer it to Fidelity unkike many others. However if you’re looking for a one-stop shop Vanguard is not it. I think you’ll be continually finding little things that are difficult or impossible to do from a banking perspective. I would take someone’s suggestion of Schwab- sounds like they are also a bank. Also we keep one local credit union account- occasionally we’ve needed something notarized or a cashier’s check & it’s been useful at the last minute since we never thought we’d need either.
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beyou
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by beyou »

Etrade is a bank and has great cash management. Plus they sell fee free Vanguard funds.
jacoavlu
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by jacoavlu »

besides, have you gone to the app store and read reviews for the Cash app?

happy Schwab bank and brokerage customer here for 15+ years
softwaregeek
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by softwaregeek »

Virtually all top brokers EXCEPT VG have decent banks attached. With appropriate balances the service can be quite good. I like schwab bank, I think it is excellent but moving now to Ally for higher rates on cash. Ally brokerage is barebones but I prefer ETF so not an issue since I rarely trade.
scifilover
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by scifilover »

I believe you can get a bill pay service at Schwab with just their brokerage account. No need for a Schwab Bank account. I have done it both ways and now use their bank version. You just have to be careful that you have cash in the brokerage account that has been their long enough.......
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JoMoney
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by JoMoney »

Vanguard just doesn't offer decent 'bank like' / cash management features.
Fidelity, Schwab, and E-Trade do. I'm sure there are others, including some of the giant monster mega banks (BoA-Merrill, Wells...)

I use Fidelity. Their CMA account works great, refunds ATM fees, free Bill-pay, and provides an account to deposit cash-back rewards from their 2% rewards Visa credit card. Fidelity's CMA account is a brokerage account, which you can also hold stocks/mutual funds in (but you have to have cash either in the FDIC bank sweep, a money market fund, or in some cases margin to use as a spending account).
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
informal guide
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by informal guide »

JoMoney wrote: Sat Sep 12, 2020 7:57 am Vanguard just doesn't offer decent 'bank like' / cash management features.
Fidelity, Schwab, and E-Trade do. I'm sure there are others, including some of the giant monster mega banks (BoA-Merrill, Wells...)

I use Fidelity. Their CMA account works great, refunds ATM fees, free Bill-pay, and provides an account to deposit cash-back rewards from their 2% rewards Visa credit card. Fidelity's CMA account is a brokerage account, which you can also hold stocks/mutual funds in (but you have to have cash either in the FDIC bank sweep, a money market fund, or in some cases margin to use as a spending account).
On a standalone basis, banking transaction services are a money loser, on a hard dollar basis, if an organization (like Vanguard or Fidelity) does not have a bank. A bank will charge Vanguard or Fidelity on an ala carte basis for each transaction. Many years ago, Merrill(before it was acquired by B of A) discovered that those who use its banking services are more likely to remain at Merrill, providing justification for those expenses and the success of its CMA business. Fidelity seems to believe that today too. My guess is that Vanguard did not want to incur that out of pocket cost, so they exited the cash management account a year or two ago. As a Vanguard investor, I cannot fault them for that.

On the other hand, Vanguard forever has prohibited EFT pulls from their accounts - -both mutual funds and brokerage - - even though they still offer checkwriting. Originally, that might have been related to risk management. I am not smart enough about the banking system to weigh in on its riskiness today; I simply don't know whether they prohibit it for risk management or for cost reasons.

If it is for cost reasons, I hope they realize that permitting it, on a per transaction basis, is much less expensive than checkwriting and will displace some checkwriting (e.g., monthly mortgage payments). Not having EFT pulls available today is a major PITA for its investors.
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JoMoney
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by JoMoney »

informal guide wrote: Sat Sep 12, 2020 8:27 am...
On a standalone basis, banking transaction services are a money loser, on a hard dollar basis, if an organization (like Vanguard or Fidelity) does not have a bank. A bank will charge Vanguard or Fidelity on an ala carte basis for each transaction. Many years ago, Merrill(before it was acquired by B of A) discovered that those who use its banking services are more likely to remain at Merrill, providing justification for those expenses and the success of its CMA business. Fidelity seems to believe that today too. My guess is that Vanguard did not want to incur that out of pocket cost, so they exited the cash management account a year or two ago. As a Vanguard investor, I cannot fault them for that...
On top of the customer loyalty, I'm always suspicious/skeptical of how financial companies are using (selling) personal financial data, which is a money maker itself. We appear to be in the middle of some possibly big transformations in how financial transactions typically work. Lots of new bank-like financial service "app" companies starting up these days (like the "Cash App' OP mentions). Also vague discussions about government/Fed public options for getting "stimulus" and other government payments into peoples hands directly, reviving post office as a bank like functions, phone apps, etc... Things are changing quite a bit on that front, and I suspect it will eat into a lot of the transaction frictional costs the big banks have made money on in the past, as well as speed up the settlement of transfers. On the other hand, I paid for gas with cash yesterday, and I couldn't help but notice how quick my transaction went relative to the person in front of me fumbling with cards and PINs, computer displays and networks. Cash leaves no personally identifiable records about the event, instant settlement, and no approval from the beast in order to trade required. ... but I digress...
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
chinchin
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Re: Cash App linked to Vanguard Brokerage to pay bills

Post by chinchin »

jacoavlu wrote: Fri Sep 11, 2020 9:33 pm besides, have you gone to the app store and read reviews for the Cash app?

happy Schwab bank and brokerage customer here for 15+ years
It's the top rated finance app.
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