What Does Clark Howard Think About Vanguard’s New Cash Deposit Feature?

Vanguard’s new Cash Deposit account is similar to interest-paying cash management accounts at Fidelity and Schwab. How does the interest rate compare? And does Clark approve of the new product?

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[jamesmorris]

As a longtime Vanguard customer..I wasn't even aware of this account option, until about a month ago; until a pop-up appeared on my Vanguard page...and I was "ALL OVER" the offer! It has always troubled me (somewhat) that there was no F.D.I.C. insured option, for my "sweep" dollars, with Vanguard..and it has mystified me, as to why a firm of their magnitude; has taken THIS LONG, to "get in the game", with an F.D.I.C. insured option! HALLELUJAH!

[ingridfitz]

The vanguard settlement fund was getting 5.2 % at that time and has maintained it til now. It appears super safe due to its high quality investments. But maybe I’m totally wrong about that, am I totally wrong on that?

[LarkOfTheWoods]

Vanguard Cash Deposit is now at 3% as of the end of January. It has been slowly rolled out to customers, so you may not see that option available to you yet. The Federal Money Market fund yield is currently 4.29%, but fluctuates more.

[user.A]

Is there a ticker symbol or do you open a regular account?

[chuckmurray]

Synchrony is at 3.75 but I have cash on the side in Vanguard so it would be nice to have this option but I don't see it on the Vanguard website. I'll be calling them Monday.

[franciscofiguero]

I was looking for the cash deposit fund in my Vanguard account and do not see one. Do you know what is the ticker symbol?

[IsmaelMartinezPR]

I cant find that option in their website.

[Novaximus]

why not just make this their standard settlement fund? I don't understand why anyone would choose not to have FDIC insurance and interest vs.... not.

[NicE-jqwv]

I opened this account and am now wondering what the point of this was when I can’t even transfer the funds into my other vanguard accounts.

[flkblues]

Goldman Sachs gives you 3.3%. SoFi get ves you 3.75% with direct deposit on savings and 2.75% on checking. Even Robinhood gold gives you 4% and all are FDIC insured. Vanguard is late to the game and not even the best option. E-Trade savings is 3.5% as well.

[edwardeighth]

Goldman Sachs is giving 3.3% on their savings account.