Vanguard's Cash Plus account is now out of pilot phase and generally available so let's discuss the features, use cases, and suggestions for improvement here.
The Vanguard Cash Plus Account is a cash management account that features a bank sweep insured by the Federal Deposit Insurance Company (FDIC) and offers a competitive yield on your short-term savings. You can use the bank sweep as a low-risk place to keep cash for your immediate needs as well as for emergencies. You also have the option to purchase any of the 5 Vanguard money market funds available in your Cash Plus Account.
The previous thread for the now-completed pilot phase that was available to some customers is here:
viewtopic.php?t=385191
List of institutions where forum members report Cash Plus routing/account number pair is invalid:
Treasury Direct
Bank of America - some customers with both a credit card and a checking account cannot pay by ACH from another bank
Comcast/Xfinity
Target Red Card
PSE&G - electric and gas utility serving New Jersey/vicinity.
Fixed:
As of May 2024 Internal Revenue Service estimated tax payments reported to work with Direct Pay and ETFPS. Recommended to select CP as "savings".
Feel free to post or PM me any updates you'd recommend based off your CP experience.
Update 4/5/2024:
On this thread retiringwhen has identified that PNC is "recycling" a routing number previously used by Oak Hills S&L that got gobbled up by PNC, one possibility is that some of these payees are not using an updated table of valid routing numbers.
viewtopic.php?p=7806547#p7806547
Post by czaj » Fri Jan 12, 2024 12:54 pm
Wake me up when money market fund auto-liquidation is available on withdrawals.
Until then, I’ll stick with Fidelity.
And I may stick with Fidelity anyway because FZDXX is close enough in yield, not to mention checkwriting, debit card, free wires, fast deposits, automatic purchase of SPAXX, customer service. Though I would prefer the government aspect of Vanguard’s money market funds.
Topic Author stan1 Posts: 15175 Joined: Mon Oct 08, 2007 4:35 pmPost by stan1 » Fri Jan 12, 2024 1:01 pm
I logged in, used the new account tool, and my Cash Plus account was created with no problems. I'll fund it next week.
I am hoping to use it to deposit income into, and then link it to credit card accounts to pay bills from it. We also have a checking account at a credit union which we will use for the few things that still need checks, like home repair and maintenance.
We prefer Treasury Money Market for income that is state tax exempt and higher yielding than the FDIC account interest so will likely put some money into the Cash Plus money market fund option as well.
We'll see how it goes. Hopefully it is recognized by our income sources and billers.
If anyone has it working with Quicken please post -- seems like the answer to that is Vanguard doesn't support Quicken downloaded transactions at this time but hoping someone else has figured out how to make it work or Vanguard has plans to add Quicken support.
Topic Author stan1 Posts: 15175 Joined: Mon Oct 08, 2007 4:35 pmPost by stan1 » Fri Jan 12, 2024 1:08 pm
czaj wrote: ↑ Fri Jan 12, 2024 12:54 pm Wake me up when money market fund auto-liquidation is available on withdrawals.
Until then, I’ll stick with Fidelity.
And I may stick with Fidelity anyway because FZDXX is close enough in yield, not to mention checkwriting, debit card, free wires, fast deposits, automatic purchase of SPAXX, customer service. Though I would prefer the government aspect of Vanguard’s money market funds.
I'd agree, if someone wants a full featured CMA plus credit card for one stop shop Fidelity and Schwab are better choices. We are fine using our credit union for these things and will never seek a one stop shop. Also agree the way Vanguard has this set up a maximizer will need to go in and move money between the FDIC sub-account and a money market fund.
mhc Posts: 5522 Joined: Mon Apr 04, 2011 10:18 pm Location: NoCoPost by mhc » Fri Jan 12, 2024 2:41 pm
The FDIC interest rate of 4.7% is pretty good. Ally is 4.35%. Fidelity CMA is 2.72%. The 4.7% makes Vanguard look like a nice option if one wants an FDIC account.
52% TSM, 23% TISM, 24.5% TBM, 0.5% cash White Coat Investor Posts: 17979 Joined: Fri Mar 02, 2007 8:11 pm Location: Greatest Snow On EarthPost by White Coat Investor » Fri Jan 12, 2024 3:12 pm
mhc wrote: ↑ Fri Jan 12, 2024 2:41 pm The FDIC interest rate of 4.7% is pretty good. Ally is 4.35%. Fidelity CMA is 2.72%. The 4.7% makes Vanguard look like a nice option if one wants an FDIC account.
Looks great unless you compare it to Federal MMF. I don't think I'm willing to give up 0.6% just for FDIC protection. I'd want something more that I'd use and I haven't figured out what that is yet as I look at the available features. If I could use this thing as my checking account maybe that would do it. But no checks. No ATM cards. Still a no go for me. I can still do what I want to do with a checking account and a MMF.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
apex84 Posts: 248 Joined: Sat Mar 10, 2007 11:51 pm Location: ChicagoPost by apex84 » Fri Jan 12, 2024 3:31 pm
I'll be giving this a try. We used to use the Vanguard Advantage account for most things. When that went away, I started using our checking account for bill pay. I will use the Cash Plus for most/all bill pay and reduce the slight income drag of transferring money to the checking account and maintaining a buffer there. We rarely use checks or ATM cards, but will keep our checking account for those.
earflop Posts: 106 Joined: Fri Sep 20, 2019 5:34 pmPost by earflop » Fri Jan 12, 2024 5:05 pm
Considering using this as a one-stop shop for DW for the sake of simplicity. All her retirement accounts are at Vanguard and the rest of her transactions are through Zelle/Venmo/Paypal. Don't have any need for checks or a debit card.
b4nash Posts: 218 Joined: Wed Apr 11, 2012 11:20 amPost by b4nash » Fri Jan 12, 2024 9:20 pm
If I could have all incoming money land in VUSXX, occasionally write checks, occasionally withdraw cash, and instantly transfer between my other Vanguard accounts, I’d be in.
Would only add complexity for me as it currently stands.
Charles Joseph Posts: 2737 Joined: Tue Apr 05, 2022 10:49 pmPost by Charles Joseph » Fri Jan 12, 2024 9:26 pm
czaj wrote: ↑ Fri Jan 12, 2024 12:54 pm Wake me up when money market fund auto-liquidation is available on withdrawals.
Until then, I’ll stick with Fidelity.
And I may stick with Fidelity anyway because FZDXX is close enough in yield, not to mention checkwriting, debit card, free wires, fast deposits, automatic purchase of SPAXX, customer service. Though I would prefer the government aspect of Vanguard’s money market funds.
Agreed to all of the above. I moved everything to Fidelity and have absolutely no regrets. I was already using the CMA for cash management for more than five years. Excellent product and service.
As an aside, one of the things I like most at Fidelity is the Money Transfer Lockdown. A nice safety feature.
Retired June 2023 RickBoglehead Posts: 8269 Joined: Wed Feb 14, 2018 8:10 am Location: In a housePost by RickBoglehead » Sat Jan 13, 2024 8:36 am
stan1 wrote: ↑ Fri Jan 12, 2024 1:01 pm I logged in, used the new account tool, and my Cash Plus account was created with no problems. I'll fund it next week.
I am hoping to use it to deposit income into, and then link it to credit card accounts to pay bills from it. We also have a checking account at a credit union which we will use for the few things that still need checks, like home repair and maintenance.
We prefer Treasury Money Market for income that is state tax exempt and higher yielding than the FDIC account interest so will likely put some money into the Cash Plus money market fund option as well.
We'll see how it goes. Hopefully it is recognized by our income sources and billers.
If anyone has it working with Quicken please post -- seems like the answer to that is Vanguard doesn't support Quicken downloaded transactions at this time but hoping someone else has figured out how to make it work or Vanguard has plans to add Quicken support.
I set it up with Quicken just fine, but have no transactions yet.Avid user of forums on variety of interests-financial, home brewing, EVs (1005 EV), etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.
RickBoglehead Posts: 8269 Joined: Wed Feb 14, 2018 8:10 am Location: In a housePost by RickBoglehead » Sat Jan 13, 2024 8:40 am
White Coat Investor wrote: ↑ Fri Jan 12, 2024 3:12 pmmhc wrote: ↑ Fri Jan 12, 2024 2:41 pm The FDIC interest rate of 4.7% is pretty good. Ally is 4.35%. Fidelity CMA is 2.72%. The 4.7% makes Vanguard look like a nice option if one wants an FDIC account.
Looks great unless you compare it to Federal MMF. I don't think I'm willing to give up 0.6% just for FDIC protection. I'd want something more that I'd use and I haven't figured out what that is yet as I look at the available features. If I could use this thing as my checking account maybe that would do it. But no checks. No ATM cards. Still a no go for me. I can still do what I want to do with a checking account and a MMF.
I'm hoping to replace Ally as my bill paying account. I write a handful of checks, and hit an ATM to withdraw maybe once a year. I pay all my bills from Ally's checking. With the increase in withdrawals from 6 to 10, I could have probably done payments from Ally Savings, but it pays less than this account. So, my tentative plan is to move my bill paying to this account, moving funds from VUSXX as needed.
Avid user of forums on variety of interests-financial, home brewing, EVs (1005 EV), etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.
Topic Author stan1 Posts: 15175 Joined: Mon Oct 08, 2007 4:35 pmPost by stan1 » Sat Jan 13, 2024 8:58 am
RickBoglehead wrote: ↑ Sat Jan 13, 2024 8:36 am I set it up with Quicken just fine, but have no transactions yet.
Great, I see that the new account is available to add on Quicken's add account user interface and I just put in a deposit from investment account settlement fund that will be available the next business day. I've started moving some cash around to try it out over the next week.
ClevrChico Posts: 3348 Joined: Tue Apr 03, 2012 8:24 pmPost by ClevrChico » Tue Jan 16, 2024 11:56 am
RickBoglehead wrote: ↑ Sat Jan 13, 2024 8:40 am White Coat Investor wrote: ↑ Fri Jan 12, 2024 3:12 pmmhc wrote: ↑ Fri Jan 12, 2024 2:41 pm The FDIC interest rate of 4.7% is pretty good. Ally is 4.35%. Fidelity CMA is 2.72%. The 4.7% makes Vanguard look like a nice option if one wants an FDIC account.
Looks great unless you compare it to Federal MMF. I don't think I'm willing to give up 0.6% just for FDIC protection. I'd want something more that I'd use and I haven't figured out what that is yet as I look at the available features. If I could use this thing as my checking account maybe that would do it. But no checks. No ATM cards. Still a no go for me. I can still do what I want to do with a checking account and a MMF.
I'm hoping to replace Ally as my bill paying account. I write a handful of checks, and hit an ATM to withdraw maybe once a year. I pay all my bills from Ally's checking. With the increase in withdrawals from 6 to 10, I could have probably done payments from Ally Savings, but it pays less than this account. So, my tentative plan is to move my bill paying to this account, moving funds from VUSXX as needed.
I have a similar plan. I'll use Vanguard's Cash Plus as my main account for bills and paychecks. My emergency fund will be in a Vanguard money market with check-writing enabled. I'll use an Ally money market account for the rare times I need to write a small check, atm, Zelle, eftps, etc.
TomP10 Posts: 240 Joined: Tue Mar 18, 2014 4:13 amPost by TomP10 » Tue Jan 16, 2024 1:41 pm
From the prior thread I am under the impression the Cash Plus account will not allow me to set-up a monthly automatic transfer. This is an important feature for me --- without it I would rather remain with my existing high yield savings account. If automatic monthly transfers are possible, then I will close the high yield savings account and move this cash reserve to Vanguard.
I have read the Vanguard Cash Plus info page but this is not addressed (or at least I did not see it).
"It is remarkable how much long term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent." -- Charlie Munger
William4u Posts: 1447 Joined: Fri Jun 01, 2012 3:02 pmPost by William4u » Tue Jan 16, 2024 2:05 pm
czaj wrote: ↑ Fri Jan 12, 2024 12:54 pm Wake me up when money market fund auto-liquidation is available on withdrawals.
Until then, I’ll stick with Fidelity.
And I may stick with Fidelity anyway because FZDXX is close enough in yield, not to mention checkwriting, debit card, free wires, fast deposits, automatic purchase of SPAXX, customer service. Though I would prefer the government aspect of Vanguard’s money market funds.
↑ This is important for me as well (especially the MM auto-liquidation). portfolioautopilot Posts: 5 Joined: Fri Dec 22, 2023 11:20 pmPost by portfolioautopilot » Tue Jan 16, 2024 2:08 pm
I don't recommend the account. I've had one for the past 6 months to try out and I've concluded to move everything out of Vanguard.
It's extremely barebones, it doesn't even give you a description on the transactions occuring (you have to guess).
ClevrChico Posts: 3348 Joined: Tue Apr 03, 2012 8:24 pmPost by ClevrChico » Tue Jan 16, 2024 2:30 pm
portfolioautopilot wrote: ↑ Tue Jan 16, 2024 2:08 pm I don't recommend the account. I've had one for the past 6 months to try out and I've concluded to move everything out of Vanguard.
It's extremely barebones, it doesn't even give you a description on the transactions occuring (you have to guess).
If I go to https://cma.web.vanguard.com/cash-center and select "Recent Activity", I'm able to see each transaction with a description similar to a bank account.
The account detail in the app does seem very limited and makes you guess what it is. If you rely on an app to do your banking, best to avoid Cash Plus. (Par for the course for the Vanguard app, unfortunately.)
Last edited by ClevrChico on Tue Jan 16, 2024 4:12 pm, edited 1 time in total. anagram Posts: 2389 Joined: Fri Aug 04, 2023 1:03 amPost by anagram » Tue Jan 16, 2024 4:12 pm
portfolioautopilot wrote: ↑ Tue Jan 16, 2024 2:08 pm I don't recommend the account. I've had one for the past 6 months to try out and I've concluded to move everything out of Vanguard.
It's extremely barebones, it doesn't even give you a description on the transactions occuring (you have to guess).
Vanguard is adding additional features so your move may be premature. You were in a pilot!
Also, it does give a full description of the transactions. No guessing required.
anagram Posts: 2389 Joined: Fri Aug 04, 2023 1:03 amPost by anagram » Tue Jan 16, 2024 4:13 pm
ClevrChico wrote: ↑ Tue Jan 16, 2024 2:30 pmportfolioautopilot wrote: ↑ Tue Jan 16, 2024 2:08 pm I don't recommend the account. I've had one for the past 6 months to try out and I've concluded to move everything out of Vanguard.
It's extremely barebones, it doesn't even give you a description on the transactions occuring (you have to guess).
If I go to https://cma.web.vanguard.com/cash-center and select "Recent Activity", I'm able to see each transaction with a description similar to a bank account.
The account detail in the app does seem very limited and make you guess what it is. If you rely on an app to do your banking, best to avoid Cash Plus. (Par for the course for the Vanguard app, unfortunately.)
The descriptions I see are complete. States to whom the payment was made. No guessing required. portfolioautopilot Posts: 5 Joined: Fri Dec 22, 2023 11:20 pmPost by portfolioautopilot » Tue Jan 16, 2024 8:37 pm
ClevrChico wrote: ↑ Tue Jan 16, 2024 2:30 pmportfolioautopilot wrote: ↑ Tue Jan 16, 2024 2:08 pm I don't recommend the account. I've had one for the past 6 months to try out and I've concluded to move everything out of Vanguard.
It's extremely barebones, it doesn't even give you a description on the transactions occuring (you have to guess).
If I go to https://cma.web.vanguard.com/cash-center and select "Recent Activity", I'm able to see each transaction with a description similar to a bank account.
The account detail in the app does seem very limited and makes you guess what it is. If you rely on an app to do your banking, best to avoid Cash Plus. (Par for the course for the Vanguard app, unfortunately.)
True, I was basing my comments off the app. ClevrChico Posts: 3348 Joined: Tue Apr 03, 2012 8:24 pmPost by ClevrChico » Tue Jan 16, 2024 8:40 pm
portfolioautopilot wrote: ↑ Tue Jan 16, 2024 8:37 pm ClevrChico wrote: ↑ Tue Jan 16, 2024 2:30 pmportfolioautopilot wrote: ↑ Tue Jan 16, 2024 2:08 pm I don't recommend the account. I've had one for the past 6 months to try out and I've concluded to move everything out of Vanguard.
It's extremely barebones, it doesn't even give you a description on the transactions occuring (you have to guess).
If I go to https://cma.web.vanguard.com/cash-center and select "Recent Activity", I'm able to see each transaction with a description similar to a bank account.
The account detail in the app does seem very limited and makes you guess what it is. If you rely on an app to do your banking, best to avoid Cash Plus. (Par for the course for the Vanguard app, unfortunately.)
True, I was basing my comments off the app.Agree 100%. The lack of detail in the app is very bad. Imagine being on vacation and wanting to check the details of a transaction from your phone?
b4nash Posts: 218 Joined: Wed Apr 11, 2012 11:20 amPost by b4nash » Tue Jan 16, 2024 9:43 pm
App is bad but mobile website is good? ClevrChico Posts: 3348 Joined: Tue Apr 03, 2012 8:24 pmPost by ClevrChico » Wed Jan 17, 2024 6:40 am
b4nash wrote: ↑ Tue Jan 16, 2024 9:43 pm App is bad but mobile website is good?Here's my take on the UI for Cash Plus:
- Desktop Browser: Usable and decent.
- Vanguard App: Barebones, no transaction detail, not good.
- Mobile Browser: Passable, but ugly. Transaction detail present, with a few taps of the screen. If you're used to a good mobile banking app, you probably won't like it at all.
Post by watchnerd » Wed Jan 17, 2024 6:42 am
TomP10 wrote: ↑ Tue Jan 16, 2024 1:41 pm From the prior thread I am under the impression the Cash Plus account will not allow me to set-up a monthly automatic transfer. This is an important feature for me --- without it I would rather remain with my existing high yield savings account. If automatic monthly transfers are possible, then I will close the high yield savings account and move this cash reserve to Vanguard.
I have read the Vanguard Cash Plus info page but this is not addressed (or at least I did not see it).
Correct, it has no automation.
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TomP10 Posts: 240 Joined: Tue Mar 18, 2014 4:13 amPost by TomP10 » Wed Jan 17, 2024 7:22 am
watchnerd wrote: ↑ Wed Jan 17, 2024 6:42 am"It is remarkable how much long term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent." -- Charlie Munger
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Post by nisiprius » Wed Jan 17, 2024 7:36 am
Can it be used, with all features available, from the Vanguard website? Or are you required to use a smartphone app?
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ClevrChico Posts: 3348 Joined: Tue Apr 03, 2012 8:24 pmPost by ClevrChico » Wed Jan 17, 2024 7:56 am
nisiprius wrote: ↑ Wed Jan 17, 2024 7:36 am Can it be used, with all features available, from the Vanguard website? Or are you required to use a smartphone app?
Yes, the desktop website lets you do everything. The app is not required. RickBoglehead Posts: 8269 Joined: Wed Feb 14, 2018 8:10 am Location: In a housePost by RickBoglehead » Wed Jan 17, 2024 8:20 am
So to transfer funds from my Vanguard Brokerage Account, this seems to be the process:
1) Sell brokerage money market on day 1.
2) On day 2, initiate a deposit into Cash Plus.
3) On day 3 2, initiate a buy of a money market in Cash Plus (same one it came from in the brokerage).
To spend funds in Cash Plus:
1) Sell money market on day 1.
2) Funds available on day 2.
I cannot transfer money market from brokerage to Cash Plus directly.
Last edited by RickBoglehead on Wed Jan 17, 2024 1:04 pm, edited 2 times in total.Avid user of forums on variety of interests-financial, home brewing, EVs (1005 EV), etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.
Topic Author stan1 Posts: 15175 Joined: Mon Oct 08, 2007 4:35 pmPost by stan1 » Wed Jan 17, 2024 8:59 am
RickBoglehead wrote: ↑ Wed Jan 17, 2024 8:20 am So to transfer funds from my Vanguard Brokerage Account, this seems to be the process:
1) Sell brokerage money market on day 1.
2) On day 2, initiate a deposit into Cash Plus.
3) On day 3, initiate a buy of a money market in Cash Plus (same one it came from in the brokerage).
To spend funds in Cash Plus:
1) Sell money market on day 1.
2) Funds available on day 2.
I cannot transfer money market from brokerage to Cash Plus directly.
I just tried to "transfer investment between accounts" 500 shares of Treasury Money Market fund in my brokerage account to the Cash Plus account. First, the user interface won't let me specify 500 shares just the total value of Treasury Money Market fund. To test it I selected the entire balance. Then got a message saying cannot transfer to a Cash Plus account. So Vanguard knows this cannot be done.
Agree movement of money from funds in brokerage account to Cash Plus is too many steps and takes too long (settlement dates).
I was able to transfer from brokerage settlement fund to Cash Plus and immediately buy Treasury Money Market fund inside Cash Plus account while waiting for it settle. That's now in process so will see what the final outcome is.
I'd like to be able to transfer in kind shares of a purchased money market fund from brokerage account to Cash Plus account (and vice versa) in one step instead of two or three.
Maybe Vanguard's answer to me would be that I should only hold Treasury Money Market fund in EITHER brokerage account or Cash Plus, which I might see the rationale to as I see what's possible with the Cash Plus account. It does seem like this is getting more complicated than it should be. Anyone coming from a CMA account at Fidelity or Schwab would be scratching their heads.