Vanguard Cash Plus Account

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retiringwhen
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Re: Vanguard Cash Plus Account

Post by retiringwhen »

anagram wrote: Wed Feb 07, 2024 11:44 am I was using my Ally Savings and MM accounts as a cash hub, along with the Ally checking account. It worked well and Ally did not object to the auto-pays on the Savings and MM accounts.
My fear with Ally is that since I don't have a checking account, they will object to my using more than 10 transactions a month from the savings account. I really didn't desire another checking account.
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anagram
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Re: Vanguard Cash Plus Account

Post by anagram »

retiringwhen wrote: Wed Feb 07, 2024 11:59 am
anagram wrote: Wed Feb 07, 2024 11:44 am I was using my Ally Savings and MM accounts as a cash hub, along with the Ally checking account. It worked well and Ally did not object to the auto-pays on the Savings and MM accounts.
My fear with Ally is that since I don't have a checking account, they will object to my using more than 10 transactions a month from the savings account. I really didn't desire another checking account.
Ally allows you to open several savings and MM accounts. I have 2 savings and 1 MM and a checking. You definitely don't want to exceed 10 transactions, so do 7 from one account and 7 from another. I never got close to the limit as I don't have that many auto-pays. If you look at their Q&A they seem to be quite happy with people using the savings and MM accounts for transactions as long as you don't exceed 10.

All that said, the CP account is much better in my view. 4.7%, coupled with a Treasury MM fund, to transfer in one day either way.

In a few months if all goes well with CP, I will close some of the Ally accounts.

Once Vanguard fixes the issue that some payees do not recognize the CP account, we should be good.
runcyc
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Re: Vanguard Cash Plus Account

Post by runcyc »

retiringwhen wrote: Wed Feb 07, 2024 11:59 am
anagram wrote: Wed Feb 07, 2024 11:44 am I was using my Ally Savings and MM accounts as a cash hub, along with the Ally checking account. It worked well and Ally did not object to the auto-pays on the Savings and MM accounts.
My fear with Ally is that since I don't have a checking account, they will object to my using more than 10 transactions a month from the savings account. I really didn't desire another checking account.
I had been using three Goldman Sachs Marcus savings accounts, each one with a different POD beneficiary. I didn't have a Marcus checking account. In a given month, I typically had 10 to 15 withdrawals from one savings account. Goldman Sachs Marcus never placed restrictions on the withdrawals. That said, I've transitioned to Vanguard CP for virtually all cash flow needs. I only keep the Goldman Sachs account, with a relatively small balance, for Treasury Direct and one utility bill.
Visitor76
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Re: Vanguard Cash Plus Account

Post by Visitor76 »

I was originally a part of the pilot program initially. Cash Plus has a yield (4.7%) which is almost unmatched by other online savings accounts.

The two things keeping me from moving all of my short term savings into Cash Plus is 1) VMFXX offers a better interest rate at 5.30 percent. And 2) I enjoy the funds transfer speed of 1 day between VMFXX and my checking account. Therefore I will use Cash Plus as an escrow account for our property taxes and annual insurance premiums.

Also Vanguard needs to add the auto transfer feature to Cash Plus.
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anagram
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Re: Vanguard Cash Plus Account

Post by anagram »

Visitor76 wrote: Wed Feb 07, 2024 3:42 pm I was originally a part of the pilot program initially. Cash Plus has a yield (4.7%) which is almost unmatched by other online savings accounts.

The two things keeping me from moving all of my short term savings into Cash Plus is 1) VMFXX offers a better interest rate at 5.30 percent. And 2) I enjoy the funds transfer speed of 1 day between VMFXX and my checking account. Therefore I will use Cash Plus as an escrow account for our property taxes and annual insurance premiums.

Also Vanguard needs to add the auto transfer feature to Cash Plus.
1 day between MM and cash in CP also. All within Vanguard, no need to external transfer.

I hope the auto transfer is added.
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Vulcan
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Re: Vanguard Cash Plus Account

Post by Vulcan »

Visitor76 wrote: Wed Feb 07, 2024 3:42 pm I was originally a part of the pilot program initially. Cash Plus has a yield (4.7%) which is almost unmatched by other online savings accounts.
The bigger point is, it's unmatched by checking accounts.

And because it is also better than pretty much any savings account (there are some ~5% accounts out there, as well as Vanguard's own MMFs), it reduces (if not completely eliminates) the incentive to micromanage cash flow between checking and savings.

Over the past few weeks, I moved DW's and my direct deposit and all our bills to CP.

The only thing I wish for is the ability to disable email alerts for withdrawals, which should be coming soon, sounds like.
If you torture the data long enough, it will confess to anything. ~Ronald Coase
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anagram
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Re: Vanguard Cash Plus Account

Post by anagram »

Vulcan wrote: Wed Feb 07, 2024 4:23 pm
Visitor76 wrote: Wed Feb 07, 2024 3:42 pm I was originally a part of the pilot program initially. Cash Plus has a yield (4.7%) which is almost unmatched by other online savings accounts.
The bigger point is, it's unmatched by checking accounts.

And because it is also better than pretty much any savings account (there are some ~5% accounts out there, as well as Vanguard's own MMFs), it reduces (if not completely eliminates) the incentive to micromanage cash flow between checking and savings.

Over the past few weeks, I moved DW's and my direct deposit and all our bills to CP.

The only thing I wish for is the ability to disable email alerts for withdrawals, which should be coming soon, sounds like.
Did you get Comcast to work for bill payment? Or perhaps you are lucky enough not to have Comcast as your internet provider. :mrgreen:

I agree about disabling the email alerts. That would be very helpful.
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Vulcan
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Re: Vanguard Cash Plus Account

Post by Vulcan »

anagram wrote: Wed Feb 07, 2024 4:40 pm Did you get Comcast to work for bill payment? Or perhaps you are lucky enough not to have Comcast as your internet provider. :mrgreen:
No Comcast for me. :twisted:
Fiber all the way! :mrgreen:
If you torture the data long enough, it will confess to anything. ~Ronald Coase
retiringwhen
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Re: Vanguard Cash Plus Account

Post by retiringwhen »

Vulcan wrote: Wed Feb 07, 2024 4:48 pm
anagram wrote: Wed Feb 07, 2024 4:40 pm Did you get Comcast to work for bill payment? Or perhaps you are lucky enough not to have Comcast as your internet provider. :mrgreen:
No Comcast for me. :twisted:
Fiber all the way! :mrgreen:
I pay Comcast (may their demise be soon and unpleasant*) by credit card to get my 2% cash back :-)

They recently laid off one my favorite engineer/archers, just made me madder.
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anagram
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Re: Vanguard Cash Plus Account

Post by anagram »

retiringwhen wrote: Wed Feb 07, 2024 4:54 pm
Vulcan wrote: Wed Feb 07, 2024 4:48 pm
anagram wrote: Wed Feb 07, 2024 4:40 pm Did you get Comcast to work for bill payment? Or perhaps you are lucky enough not to have Comcast as your internet provider. :mrgreen:
No Comcast for me. :twisted:
Fiber all the way! :mrgreen:
I pay Comcast (may their demise be soon and unpleasant*) by credit card to get my 2% cash back :-)

They recently laid off one my favorite engineer/archers, just made me madder.
But then you lose your $5 credit. Right?
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anagram
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Re: Vanguard Cash Plus Account

Post by anagram »

Vulcan wrote: Wed Feb 07, 2024 4:48 pm
anagram wrote: Wed Feb 07, 2024 4:40 pm Did you get Comcast to work for bill payment? Or perhaps you are lucky enough not to have Comcast as your internet provider. :mrgreen:
No Comcast for me. :twisted:
Fiber all the way! :mrgreen:
:twisted:
retiringwhen
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Re: Vanguard Cash Plus Account

Post by retiringwhen »

anagram wrote: Wed Feb 07, 2024 5:44 pm
retiringwhen wrote: Wed Feb 07, 2024 4:54 pm
Vulcan wrote: Wed Feb 07, 2024 4:48 pm
anagram wrote: Wed Feb 07, 2024 4:40 pm Did you get Comcast to work for bill payment? Or perhaps you are lucky enough not to have Comcast as your internet provider. :mrgreen:
No Comcast for me. :twisted:
Fiber all the way! :mrgreen:
I pay Comcast (may their demise be soon and unpleasant*) by credit card to get my 2% cash back :-)

They recently laid off one my favorite engineer/archers, just made me madder.
But then you lose your $5 credit. Right?
At least in NJ/PA Comcast does not offer a $5 savings for debit cards.
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anagram
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Re: Vanguard Cash Plus Account

Post by anagram »

retiringwhen wrote: Wed Feb 07, 2024 5:54 pm
anagram wrote: Wed Feb 07, 2024 5:44 pm
retiringwhen wrote: Wed Feb 07, 2024 4:54 pm
Vulcan wrote: Wed Feb 07, 2024 4:48 pm
anagram wrote: Wed Feb 07, 2024 4:40 pm Did you get Comcast to work for bill payment? Or perhaps you are lucky enough not to have Comcast as your internet provider. :mrgreen:
No Comcast for me. :twisted:
Fiber all the way! :mrgreen:
I pay Comcast (may their demise be soon and unpleasant*) by credit card to get my 2% cash back :-)

They recently laid off one my favorite engineer/archers, just made me madder.
But then you lose your $5 credit. Right?
At least in NJ/PA Comcast does not offer a $5 savings for debit cards.
I get $5 for paperless and another $5 for using a checking/savings account. :sharebeer

At them moment CP does not work for that. Soon though...
Visitor76
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Re: Vanguard Cash Plus Account

Post by Visitor76 »

anagram wrote: Wed Feb 07, 2024 3:49 pm
Visitor76 wrote: Wed Feb 07, 2024 3:42 pm I was originally a part of the pilot program initially. Cash Plus has a yield (4.7%) which is almost unmatched by other online savings accounts.

The two things keeping me from moving all of my short term savings into Cash Plus is 1) VMFXX offers a better interest rate at 5.30 percent. And 2) I enjoy the funds transfer speed of 1 day between VMFXX and my checking account. Therefore I will use Cash Plus as an escrow account for our property taxes and annual insurance premiums.

Also Vanguard needs to add the auto transfer feature to Cash Plus.
1 day between MM and cash in CP also. All within Vanguard, no need to external transfer.

I hope the auto transfer is added.
True, but I prefer to keep the link from MM to my checking account so I have fast access to cash if I need it.
Wealth is not about having a lot of money; it's about having a lot of options.
Visitor76
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Re: Vanguard Cash Plus Account

Post by Visitor76 »

Vulcan wrote: Wed Feb 07, 2024 4:23 pm
Visitor76 wrote: Wed Feb 07, 2024 3:42 pm I was originally a part of the pilot program initially. Cash Plus has a yield (4.7%) which is almost unmatched by other online savings accounts.
The bigger point is, it's unmatched by checking accounts.

And because it is also better than pretty much any savings account (there are some ~5% accounts out there, as well as Vanguard's own MMFs), it reduces (if not completely eliminates) the incentive to micromanage cash flow between checking and savings.

Over the past few weeks, I moved DW's and my direct deposit and all our bills to CP.

The only thing I wish for is the ability to disable email alerts for withdrawals, which should be coming soon, sounds like.
I do like having Cash Plus as a backup bank account in case I ever need to switch where my direct deposit is going. I wish they would create a debit card option.
Wealth is not about having a lot of money; it's about having a lot of options.
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Vulcan
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Re: Vanguard Cash Plus Account

Post by Vulcan »

Visitor76 wrote: Thu Feb 08, 2024 4:43 am I do like having Cash Plus as a backup bank account in case I ever need to switch where my direct deposit is going. I wish they would create a debit card option.
For me, backup is now Ally.

4.7% > 0.1%

As for debit card, I never use one with my main checking account for security reasons.

I use Schwab and Fidelity ones for that, with a couple hundred sitting at each.
If you torture the data long enough, it will confess to anything. ~Ronald Coase
Visitor76
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Re: Vanguard Cash Plus Account

Post by Visitor76 »

Vulcan wrote: Thu Feb 08, 2024 5:53 am
Visitor76 wrote: Thu Feb 08, 2024 4:43 am I do like having Cash Plus as a backup bank account in case I ever need to switch where my direct deposit is going. I wish they would create a debit card option.
For me, backup is now Ally.

4.7% > 0.1%

As for debit card, I never use one with my main checking account for security reasons.

I use Schwab and Fidelity ones for that, with a couple hundred sitting at each.
I agree as I only use my checking account debit card when making ATM withdrawals. I just like having the option to get cold hard cash if I need it.
Wealth is not about having a lot of money; it's about having a lot of options.
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anagram
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Re: Vanguard Cash Plus Account

Post by anagram »

Visitor76 wrote: Thu Feb 08, 2024 9:24 am
Vulcan wrote: Thu Feb 08, 2024 5:53 am
Visitor76 wrote: Thu Feb 08, 2024 4:43 am I do like having Cash Plus as a backup bank account in case I ever need to switch where my direct deposit is going. I wish they would create a debit card option.
For me, backup is now Ally.

4.7% > 0.1%

As for debit card, I never use one with my main checking account for security reasons.

I use Schwab and Fidelity ones for that, with a couple hundred sitting at each.
I agree as I only use my checking account debit card when making ATM withdrawals. I just like having the option to get cold hard cash if I need it.
Ally had a lot of fraud on its debit cards a while back. Even cards which had not reached the customer. :oops:
Ask me how I know.
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Vulcan
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Re: Vanguard Cash Plus Account

Post by Vulcan »

Visitor76 wrote: Thu Feb 08, 2024 9:24 am I agree as I only use my checking account debit card when making ATM withdrawals. I just like having the option to get cold hard cash if I need it.
Of course, only for ATM withdrawals - what else would one use their debit card for?

The problem is, bad guys can use it for other purposes.

So I prefer to keep it disabled on the main transaction account, and I hope Vanguard CP never offers debit cards - or at least never forces me to have one.

As I mentioned, I use separate accounts with minimal balances for checkwriting and ATM access.

"One stop shop" is an overrated strategy in my opinion. I prefer the "divide and conquer" one. :twisted:
If you torture the data long enough, it will confess to anything. ~Ronald Coase
Visitor76
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Re: Vanguard Cash Plus Account

Post by Visitor76 »

Vulcan wrote: Thu Feb 08, 2024 10:06 am
Visitor76 wrote: Thu Feb 08, 2024 9:24 am I agree as I only use my checking account debit card when making ATM withdrawals. I just like having the option to get cold hard cash if I need it.
Of course, only for ATM withdrawals - what else would one use their debit card for?

The problem is, bad guys can use it for other purposes.

So I prefer to keep it disabled on the main transaction account, and I hope Vanguard CP never offers debit cards - or at least never forces me to have one.

As I mentioned, I use separate accounts with minimal balances for checkwriting and ATM access.

"One stop shop" is an overrated strategy in my opinion. I prefer the "divide and conquer" one. :twisted:
Well if you listen to Dave Ramsey he preaches using debit cards over credit cards for every day transactions. But I seriously doubt Dave with his net worth uses debit cards. Debit cards, for anything other than ATM withdrawals, are a disaster waiting to happen. All you need is for a bad actor to gain your PIN and they have access to you account.

I'm not a fan of check writing as anyone can white wash a check and start adding zeros.
Wealth is not about having a lot of money; it's about having a lot of options.
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Vulcan
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Re: Vanguard Cash Plus Account

Post by Vulcan »

Visitor76 wrote: Thu Feb 08, 2024 10:32 am Well if you listen to Dave Ramsey he preaches using debit cards over credit cards for every day transactions. But I seriously doubt Dave with his net worth uses debit cards. Debit cards, for anything other than ATM withdrawals, are a disaster waiting to happen. All you need is for a bad actor to gain your PIN and they have access to you account.

I'm not a fan of check writing as anyone can white wash a check and start adding zeros.
Dave who?:)

You don't even need a PIN. You can just use it as a credit card. Hence, no active debit cards on main transaction accounts, thankyouverymuch.

Checks are sometimes still required (mainly school-related things, and that chapter is ending for us:). Again, no need to white wash. Anyone can just print a new check with same numbers. Same story. Separate account.
If you torture the data long enough, it will confess to anything. ~Ronald Coase
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Re: Vanguard Cash Plus Account

Post by RickBoglehead »

Visitor76 wrote: Thu Feb 08, 2024 10:32 am Well if you listen to Dave Ramsey he preaches using debit cards over credit cards for every day transactions. But I seriously doubt Dave with his net worth uses debit cards. Debit cards, for anything other than ATM withdrawals, are a disaster waiting to happen. All you need is for a bad actor to gain your PIN and they have access to you account.

I'm not a fan of check writing as anyone can white wash a check and start adding zeros.
Because his audience is the mostly "I can't control my spending" crowd.
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Ricola
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Re: Vanguard Cash Plus Account

Post by Ricola »

Appreciate hearing others' feedback as they begin to use the CP account. For now, I still want to keep my banking and investing accounts separate. Banking items require a lot of accessing the account or using phone Apps which I still feel reluctant to do with brokerage accounts, just another vulnerability. Curious, when you access the CP does it state that you are leaving Vanguard and going to an outside web platform?
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Vulcan
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Re: Vanguard Cash Plus Account

Post by Vulcan »

Ricola wrote: Thu Feb 08, 2024 11:50 amCurious, when you access the CP does it state that you are leaving Vanguard and going to an outside web platform?
No, it's the same web site.

I don't use Vanguard's app. With reduced incentives to micromanage cash flow due to competitive rates the need to check the account on the go should also be significantly reduced, so not sure what I'd use the app for. I can login to the website from the phone occasionally if so desired.
If you torture the data long enough, it will confess to anything. ~Ronald Coase
slash8915
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Re: Vanguard Cash Plus Account

Post by slash8915 »

Out of curiosity, what would happen if I just manually had checks made for my Cash Plus account? Would they simply bounce?
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Re: Vanguard Cash Plus Account

Post by Visitor76 »

slash8915 wrote: Thu Feb 08, 2024 1:11 pm Out of curiosity, what would happen if I just manually had checks made for my Cash Plus account? Would they simply bounce?
Cash Plus doesn't have check writing available yet unlike Vanguard Federal Money Market Fund.
Wealth is not about having a lot of money; it's about having a lot of options.
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nps
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Re: Vanguard Cash Plus Account

Post by nps »

Visitor76 wrote: Thu Feb 08, 2024 2:57 pm
slash8915 wrote: Thu Feb 08, 2024 1:11 pm Out of curiosity, what would happen if I just manually had checks made for my Cash Plus account? Would they simply bounce?
Cash Plus doesn't have check writing available yet unlike Vanguard Federal Money Market Fund.
It's easy enough to have checks printed anyway. All it requires is routing number and account number. I assume they would bounce but who knows. Maybe someone will try it.
slash8915
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Re: Vanguard Cash Plus Account

Post by slash8915 »

nps wrote: Thu Feb 08, 2024 8:23 pm
Visitor76 wrote: Thu Feb 08, 2024 2:57 pm
slash8915 wrote: Thu Feb 08, 2024 1:11 pm Out of curiosity, what would happen if I just manually had checks made for my Cash Plus account? Would they simply bounce?
Cash Plus doesn't have check writing available yet unlike Vanguard Federal Money Market Fund.
It's easy enough to have checks printed anyway. All it requires is routing number and account number. I assume they would bounce but who knows. Maybe someone will try it.
That's what I mean. Anyone could easily purchase a book of checks from checks.com. I just wonder if it would actually work... If so, that would solve ONE issue with using this as an all-inclusive banking solution.
runcyc
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Re: Vanguard Cash Plus Account

Post by runcyc »

slash8915 wrote: Thu Feb 08, 2024 10:07 pm
nps wrote: Thu Feb 08, 2024 8:23 pm
Visitor76 wrote: Thu Feb 08, 2024 2:57 pm
slash8915 wrote: Thu Feb 08, 2024 1:11 pm Out of curiosity, what would happen if I just manually had checks made for my Cash Plus account? Would they simply bounce?
Cash Plus doesn't have check writing available yet unlike Vanguard Federal Money Market Fund.
It's easy enough to have checks printed anyway. All it requires is routing number and account number. I assume they would bounce but who knows. Maybe someone will try it.
That's what I mean. Anyone could easily purchase a book of checks from checks.com. I just wonder if it would actually work... If so, that would solve ONE issue with using this as an all-inclusive banking solution.
One way to try this would be to have your checks printed and make a deposit to one of your Vanguard mutual fund accounts. If the check is rejected, it would simply be rejected without you having to pay a fee.
slash8915
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Re: Vanguard Cash Plus Account

Post by slash8915 »

Man, the Vanguard app is just... Bad. The information it gives you is minimal, and to do even the most basic of things such as add an external account or verify said external account, it forces you to go to the website anyways. It's a shame, because the actual app UI/layout isn't bad at all. I actually think it looks more polished than the Fidelity or Schwab apps.

Vanguard should honestly just make the app a wrapper for their mobile site. That would fix a lot of the shortcomings that are currently there. It would be tough to use this as my main banking app.
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stan1
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Re: Vanguard Cash Plus Account

Post by stan1 »

Visitor76 wrote: Thu Feb 08, 2024 2:57 pm
slash8915 wrote: Thu Feb 08, 2024 1:11 pm Out of curiosity, what would happen if I just manually had checks made for my Cash Plus account? Would they simply bounce?
Cash Plus doesn't have check writing available yet unlike Vanguard Federal Money Market Fund.
Vanguard has stated they do not intend to offer check writing or a debit card with Cash Plus. I would not expect them to add either feature unless they completely rethink their strategy. I think they are trying to offer a minimal, low cost (to them) cash management product that has relatively high yield for investors; if they offer more features that cost them money to operate the yields would be less. Vanguard is not a bank so they have to outsource banking functions.
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Re: Vanguard Cash Plus Account

Post by Visitor76 »

stan1 wrote: Fri Feb 09, 2024 9:06 am
Visitor76 wrote: Thu Feb 08, 2024 2:57 pm
slash8915 wrote: Thu Feb 08, 2024 1:11 pm Out of curiosity, what would happen if I just manually had checks made for my Cash Plus account? Would they simply bounce?
Cash Plus doesn't have check writing available yet unlike Vanguard Federal Money Market Fund.
Vanguard has stated they do not intend to offer check writing or a debit card with Cash Plus. I would not expect them to add either feature unless they completely rethink their strategy. I think they are trying to offer a minimal, low cost (to them) cash management product that has relatively high yield for investors; if they offer more features that cost them money to operate the yields would be less. Vanguard is not a bank so they have to outsource banking functions.
That makes sense. It will be interesting to see how low their yield will drop once we start seeing cuts to the Fed rate.
Wealth is not about having a lot of money; it's about having a lot of options.
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stan1
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Re: Vanguard Cash Plus Account

Post by stan1 »

New feature per email from Vanguard just received, choice to sweep money market dividends into Cash Plus bank sweep. I guess this is a quick way to replenish Cash Plus balance without having to go in and do a buy/sell for people who like "auto pilot". Not sure how many people will use this. Now if they would allow sweep of any dividends from a brokerage account to Cash Plus bank sweep that might be more interesting to retirees "living off their dividends".
Dear Vanguard Cash Plus Client,

On February 21, 2024, the Vanguard Cash Plus Account will offer 2 options for dividends received from Vanguard money market fund investments. You can:

Reinvest your dividends in the fund.
Send your dividends to the Cash Plus bank sweep.
If you currently have a different option selected for your Cash Plus Account dividends, it'll be changed to reinvest your dividends in the fund effective February 21, 2024.

You can switch your dividend election online at any time.

Thank you for choosing the Vanguard Cash Plus Account.
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stan1
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Re: Vanguard Cash Plus Account

Post by stan1 »

Visitor76 wrote: Fri Feb 09, 2024 10:40 am
stan1 wrote: Fri Feb 09, 2024 9:06 am
Visitor76 wrote: Thu Feb 08, 2024 2:57 pm
slash8915 wrote: Thu Feb 08, 2024 1:11 pm Out of curiosity, what would happen if I just manually had checks made for my Cash Plus account? Would they simply bounce?
Cash Plus doesn't have check writing available yet unlike Vanguard Federal Money Market Fund.
Vanguard has stated they do not intend to offer check writing or a debit card with Cash Plus. I would not expect them to add either feature unless they completely rethink their strategy. I think they are trying to offer a minimal, low cost (to them) cash management product that has relatively high yield for investors; if they offer more features that cost them money to operate the yields would be less. Vanguard is not a bank so they have to outsource banking functions.
That makes sense. It will be interesting to see how low their yield will drop once we start seeing cuts to the Fed rate.
I think Vanguard will say their intent is that it will be higher than many other FDIC accounts, but maybe not the highest yielding FDIC account. Sort of like it is now. Maximizers will probably want to move their money around to get higher yield.
Visitor76
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Re: Vanguard Cash Plus Account

Post by Visitor76 »

stan1 wrote: Fri Feb 09, 2024 10:46 am
Visitor76 wrote: Fri Feb 09, 2024 10:40 am
stan1 wrote: Fri Feb 09, 2024 9:06 am
Visitor76 wrote: Thu Feb 08, 2024 2:57 pm
slash8915 wrote: Thu Feb 08, 2024 1:11 pm Out of curiosity, what would happen if I just manually had checks made for my Cash Plus account? Would they simply bounce?
Cash Plus doesn't have check writing available yet unlike Vanguard Federal Money Market Fund.
Vanguard has stated they do not intend to offer check writing or a debit card with Cash Plus. I would not expect them to add either feature unless they completely rethink their strategy. I think they are trying to offer a minimal, low cost (to them) cash management product that has relatively high yield for investors; if they offer more features that cost them money to operate the yields would be less. Vanguard is not a bank so they have to outsource banking functions.
That makes sense. It will be interesting to see how low their yield will drop once we start seeing cuts to the Fed rate.
I think Vanguard will say their intent is that it will be higher than many other FDIC accounts, but maybe not the highest yielding FDIC account. Sort of like it is now. Maximizers will probably want to move their money around to get higher yield.
And at that time it will be interesting to see what Vanguard will do to try and keep investors onboard Cash Plus. I've played the game of chasing high yields in the past. And frankly if the difference is less that .50% the juice isn't worth the squeeze.
Wealth is not about having a lot of money; it's about having a lot of options.
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stan1
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Re: Vanguard Cash Plus Account

Post by stan1 »

Visitor76 wrote: Fri Feb 09, 2024 11:01 am And at that time it will be interesting to see what Vanguard will do to try and keep investors onboard Cash Plus. I've played the game of chasing high yields in the past. And frankly if the difference is less that .50% the juice isn't worth the squeeze.
I think Vanguard would say if you want the highest FDIC yield on your cash then you should plan to move your money where you want. I don't think they have any intent of a marketing campaign bragging "we have the highest FDIC yield". As you point out, I think they will be good but maybe not the best so people who don't care about 50 basis point difference might be fine with Cash Plus as a single account. We do have a very few Bogleheads who I think might move to a different bank for just 10 basis point more yield. But time will tell.
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Vulcan
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Re: Vanguard Cash Plus Account

Post by Vulcan »

stan1 wrote: Fri Feb 09, 2024 11:26 am I think Vanguard would say if you want the highest FDIC yield on your cash then you should plan to move your money where you want. I don't think they have any intent of a marketing campaign bragging "we have the highest FDIC yield".
CP's rates should be compared against checking, not savings, accounts.
If you torture the data long enough, it will confess to anything. ~Ronald Coase
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stan1
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Re: Vanguard Cash Plus Account

Post by stan1 »

Vulcan wrote: Fri Feb 09, 2024 6:15 pm
stan1 wrote: Fri Feb 09, 2024 11:26 am I think Vanguard would say if you want the highest FDIC yield on your cash then you should plan to move your money where you want. I don't think they have any intent of a marketing campaign bragging "we have the highest FDIC yield".
CP's rates should be compared against checking, not savings, accounts.
With some banks waiving Regulation D (with path by Fed to make that permanent) the distinction between savings and checking is now murky and will get murkier over time, especially since CP does not have checks or a debit card. Can't quite bucket these types of accounts into simple checking or savings any more. People need to look at what meets their needs and make their best choices.
xmorphicx
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Re: Vanguard Cash Plus Account

Post by xmorphicx »

Anyone know if the Cash Plus account offers early direct deposit or do funds become available on payday?
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Vulcan
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Re: Vanguard Cash Plus Account

Post by Vulcan »

xmorphicx wrote: Sat Feb 10, 2024 9:54 am Anyone know if the Cash Plus account offers early direct deposit or do funds become available on payday?
Actually... they become available the day after payday (but they post on payday - and not early).
If you torture the data long enough, it will confess to anything. ~Ronald Coase
xmorphicx
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Re: Vanguard Cash Plus Account

Post by xmorphicx »

Vulcan wrote: Sat Feb 10, 2024 2:06 pm Actually... they become available the day after payday (but they post on payday - and not early).
That makes sense. Thank you for confirming!
metalworking
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Re: Vanguard Cash Plus Account

Post by metalworking »

Reading through this thread I am still confused about using cash plus to autopay bills. Can I schedule a monthly transaction so that I pay off my credit card bill through cash plus. Thanks
retiringwhen
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Re: Vanguard Cash Plus Account

Post by retiringwhen »

metalworking wrote: Mon Feb 12, 2024 8:43 am Reading through this thread I am still confused about using cash plus to autopay bills. Can I schedule a monthly transaction so that I pay off my credit card bill through cash plus. Thanks
No, but you can schedule a monthly transaction to payoff your credit card using cash plus via the normal website features for credit card issuers. That is how I use the system.

I think of Cash Plus as essentially the same thing as a savings account at Ally for example, no frills, no special features, just high interest rate yield and a routing number.
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stan1
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Re: Vanguard Cash Plus Account

Post by stan1 »

metalworking wrote: Mon Feb 12, 2024 8:43 am Reading through this thread I am still confused about using cash plus to autopay bills. Can I schedule a monthly transaction so that I pay off my credit card bill through cash plus. Thanks
No, Cash Plus does not have a bill pay feature like an online checking account at a bank or credit union.

You provide the CP routing number and account number to your billers, as you would if you had your bills on autopay at any other biller through a checking account.

Three exceptions are noted on the first post in this thread. If there are more billers that don't work with CP, I can add them to that post.
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8foot7
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Re: Vanguard Cash Plus Account

Post by 8foot7 »

stan1 wrote: Fri Jan 12, 2024 12:35 pm

List of institutions where forum members report Cash Plus routing/account number pair is invalid:
...
Bank of America - some customers
...
Target Red Card
Unfortunately ran into both of these this morning while doing mid-month bill payments. This account is useless for my personal workflow if I can't pay two important billers, and instead I have to transfer money to an account these payees recognize. The point for me of Cash Plus is cash in a high yield account without withdrawal restrictions, not to have some cash in a high yield account for some purposes but then other cash elsewhere for a couple of transactions a month. I don't know whose fault it is and (not trying to be rude, but) I don't really care. Back to Schwab I go.
BanjoDonkey
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Re: Vanguard Cash Plus Account

Post by BanjoDonkey »

I read (most of) this thread, and decided to open a Vanguard Cash Plus account for my cash savings (EF, house downpayment, and other short-term goals). I previously held it with PNC at 4.22 percent. Here's what swayed me:

1. The interest rate. I don't usually hop around on HYSAs unless the rate is significantly better. But nearly 0.5% is a pretty good bump.

2. Having it all in one place. My IRA and brokerage are at Vanguard already and one login is easier than two.

However, I really liked PNC's buckets (which Ally also has apparently). It was very useful to separate the different goals. But I decided I could just build something similar on my personal finance spreadsheet, and it works just as well.

That's my 2 cents.
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Jamthony19974
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Re: Vanguard Cash Plus Account

Post by Jamthony19974 »

So far I really like vanguards cash plus acct. I use it as an extra savings acct. I also use fidelity’s cash account.
Lastrun
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Re: Vanguard Cash Plus Account

Post by Lastrun »

8foot7 wrote: Mon Feb 12, 2024 9:21 am
stan1 wrote: Fri Jan 12, 2024 12:35 pm

List of institutions where forum members report Cash Plus routing/account number pair is invalid:
...
Bank of America - some customers
...
Target Red Card
Unfortunately ran into both of these this morning while doing mid-month bill payments. This account is useless for my personal workflow if I can't pay two important billers, and instead I have to transfer money to an account these payees recognize. The point for me of Cash Plus is cash in a high yield account without withdrawal restrictions, not to have some cash in a high yield account for some purposes but then other cash elsewhere for a couple of transactions a month. I don't know whose fault it is and (not trying to be rude, but) I don't really care. Back to Schwab I go.
A request for the thread and the OP.

Has anyone with BOTH a checking account at BofA, AND a credit card been able to link up with Cash Plus for ACH pulls?

If the answer is no, then the “some customers” should be modified in the OP to “customers with both checking and credit cards”.
slash8915
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Re: Vanguard Cash Plus Account

Post by slash8915 »

Does anyone know how long it takes for funds to become available to withdrawal? I opened a Cash Plus account last week and deposited $100 as a test. The funds were immediately available to trade, but it still shows $0 available to withdrawal.
retiringwhen
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Re: Vanguard Cash Plus Account

Post by retiringwhen »

slash8915 wrote: Wed Feb 14, 2024 6:32 am Does anyone know how long it takes for funds to become available to withdrawal? I opened a Cash Plus account last week and deposited $100 as a test. The funds were immediately available to trade, but it still shows $0 available to withdrawal.
i did a deposit from a credit union as a pull by Vanguard from the CU. The withdrawal wait was about 7 business days. Typical of Vanguard pulls in my other accounts.

I have not done a push from the CU yet, but I understand the wait is shorter.
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