I've used Vanguard for my IRA but am curious about their Cash Plus account. Does anyone have one? It's FDIC insured and seems like an easy way to transfer money into my IRA. Just wondering if it's easy enough to transfer money to from external accounts. I know Vanguard has some serious lengthy holds when I transfer to my IRA and am hoping that wouldn't be the case with this savings account.
Answers
But I'm not sure what great advantage it would confer anyway. Vanguard uses the VMFXX money market mutual fund as its default settlement fund (unlike several other brokerages which use low-interest accounts as settlement accounts, in Schwab's case insultingly so). That's of course true with both Vanguard taxable and IRA accounts. Currently VMFXX pays 4.2% and the Cash Plus account 3.65%. Yes, VMFXX is not FDIC-insured, but we're talking about Vanguard here - they're not going anywhere.
I opened a Vanguard Cash Plus (taxable) account for some type of bonus 3-4 years ago and used it as required. It worked fine, but since then I've done all transfers via ACH pushes or pulls initiated from my Vanguard settlement fund and not had any problems with this. Your needs may be different with a Vanguard IRA account, however.