Vanguard Business Accounts?

[Trooper]

I am a treasurer for a small HOA, a role for which I volunteered shortly after retirement.

We have a reserve fund of roughly $100K which currently sits in a Chase business savings account. This account is paying less than 0.05%, and the president and I would like to explore how we get higher rates, given the current environment.

Does Vanguard offer the ability to have a business brokerage account, where at a minimum, we could have access to VFMXX, or possibly purchase brokered CDs like I do in my personal accounts?

Note that I'm not tied to Vanguard but am familiar with them because of my personal holdings. We would also need the ability to easily transfer monies from Vanguard to our operating account which also sits at Chase.

Thanks.

 

[plsprius]

Look into short-term FDIC insured CDARS CDs and/or IntraFI ICS accounts. (Google it.)

You will need to open an additional account at another bank, but it will be worth it to get market rates. This is how my HOA does it. I don't think Vanguard will open a HOA account, but I could be wrong.

 

[Morgan22]

You may not be Treasurer forever, so maybe open an account up at Schwab or Fidelity? That way if the next person that takes over isn't comfortable doing things online, they'll be able to walk into an office.

The 7 day yield for SPAXX (one of the default brokerage MM accounts) is 4.96%.

 

[Trooper]

You may not be Treasurer forever, so maybe open an account up at Schwab or Fidelity? That way if the next person that takes over isn't comfortable doing things online, they'll be able to walk into an office.

Great point, thanks.

 

[PaunchyPirate]

In my previous HOA, we had a CD ladder, just like I do as a private individual. We only purchased CDs in order to get the FDIC coverage. We purchased CDs that could be cashed in early if needed for an emergency situation (usually with some form of interest-loss penalty). I honestly don't know if this was done inside "business accounts" or not. I assume so since our checking account was clearly opened for HOA use. Speak with your Chase banker. I would have to think they have something that will yield you a lot better than your current 0.05% rate.