Redeeming Vanguard Brokerage CD's

[bizlady]

Bought some Vanguard CD's earlier this year and have one coming to term this week. Do they automatically renew or do I sell it on the due date?

 

[njhowie]

Generally, on the morning of maturity, the CDs will be removed from your account and cash for face value plus accrued interest will be credited. Then you reinvest as you like.

However, if you signed up for auto-renewal when you purchased they will auto renew. I know Fidelity offers this on some of the CDs, not sure of Vanguard. However, again, for auto-renew, you would have had to specifically indicated that when you purchased if it was a new issue. If you are unsure or don't remember, pick up the phone and call customer service and ask. If you did not specify auto renew - kick back, there's nothing to do.

 

[jebmke]

I do not believe that VG does an auto-roll. CDs and Treasury securities mature and cash will go to your settlement account.

 

[ArmchairMillionaire23]

Bought some Vanguard CD's earlier this year and have one coming to term this week. Do they automatically renew or do I sell it on the due date?

Mine came due towards the end of August. I was planning on using the $20K plus the $470 (4.7% APY but it was a 6-month CD) on a new vehicle. The vehicle, however, was ordered in July, went into production the first week in August, and is still not at the dealership yet. So I just left the $$ in the brokerage account. Since the CD matured, the brokerage settlement fund (VFMXX) has credited my account a "dividend" of around $90 every month. The fund prospectus shows the 1-year average annual return as 4.83% so right now that $20K is actually earning more just sitting in the settlement fund than it did in the CD.

Go figure...

 

[Rianne]

Also, I have a treasury reaching maturity 11/30/2023. But there’s a CD I want that doesn’t settle until 12/5. I bought it. You can buy any CD or treasury before your
CD/treasury matures as long as the one you buy settles on that date or later.

 

[MarieIG]

I believe my cash from the CD at Vanguard showed up in my settlement account the day after maturity.