Vanguard Cash Deposit (New Feature)

[jazz4cash]

I got a weird email from Vanguard “Introducing New Cash Deposit” which is an option for for the settlement fund in your brokerage account. It looks like someone sent out a draft template of the email (“Cash Deposit is now paying X% apy). When you click the link the apy is 3.5% but the Federal MM is >5%!! Cash Deposit has a great FDIC limit but what am I missing?

 

[RE2Boys]

Spam?

 

[jazz4cash]

That’s kinda funny…..Vanguard is a spammer. Here are 2 takes from Clark Howard
The email is legit and the feature is not new…

https://clark.com/personal-finance-credit/investing-retirement/vanguard-cash-deposit/

Clark’s overall impression of Vanguard lately…

 

[Paulz]

I received a similar email, but my percentages were different. Mine was for 4.5% which I accepted and deposited $100 in just to open. I'm getting a little over 5% in my credit unions CDs, so don't plan to put any additional funds in unless they can beat my CD rates.

 

[MarieIG]

Yes, they have those, due to FDIC insurance.

When I got my invite - the higher rate wasn't available for IRAs. (I'm currently using the federal money market for my settlement accounts.)

 

[Another Reader]

The Cash Plus account offers 4.5 percent (variable) and the money is deposited in a group of program banks. It's a pilot project and is available by invitation only. My account and demographics are apparently not attractive, as I have not received the invitation. I can get 4.5 percent in several banks, so it's a convenience thing for me. I'm getting slightly over 5 percent in the MM accounts, so I'm not too upset.

The Cash Deposit account pays 3.5 percent and appears to be open to anyone. It has been around for awhile.