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Investing - Theory, News & General • Re: Vanguard Cash Plus Account

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I ended up moving away from Vanguard Cash Plus as my primary transaction account. Mostly for various reasons discussed in this thread, such as having trouble linking it to other banks and the one day delay for fund availability.

Now I am wondering if there’s really any reason to keep it. I have a taxable Vanguard brokerage account and feel like the sweep will always earn more than the Cash Plus. Is there any reason to keep it if you aren’t using it for FDIC insurance or for transactions?
I did the same thing a while back.

If you are not using ACH to pay bills, there is not much else you can't do in just the regular brokerage. When I did testing a while back there was no speed advantage to Cash Plus over brokerage in terms of moving money around.

One thing about Cash Plus is we just don't know how low it will go in a very low rate environment. As an example, VMFXX, SPAXX, etc. basically went to zero, while the HYSAs (Ally etc.) leveled off at about 0.40%.
Did you end up closing yours?

Hmm. I have a capital one savings account and even if they are 15 or 20 BP below VCP is it worth the squeeze?

Statistics: Posted by manlymatt83 — Mon Aug 26, 2024 6:20 pm



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