3% ish Easy Access... At Vanguard!

NedS

PParka said:

I was about to transfer some of my Vanguard S&S ISA into a cash ISA, but it looks like I might as well leave it as cash in my Vanguard account.

At least it means I will have one less account to keep track of, as I'm trying to simplify things as I approach early retirement.  Also, the Vanguard ISA is flexible, so I can replace any money I withdraw.

Are Vanguard likely to question why there is a large-ish cash balance in an investment account?

No. They are not doing you any favours here, and you are not doing anything against the terms and conditions on the account. Vanguard are simply passing on most of the overnight rate they receive on cash held on your account to you, less a small fee for themselves. Very generous of them, where most banks / platforms simply keep it for themselves to help cover costs.
It's cost neutral to them. They charge you a 0.2% fee on cash that is invested, or deduct a 0.2% fee from base rate and pass the rest onto you. Either way, they are having their 0.2% out of you regardless whether you hold funds or cash.

tunde10

I noticed this a couple of months back. I sold some shares in the ISA and left it as cash awaiting the transfer to the Virgin M 4.4% Cash ISA.

Up until today, the transfer has still not been done but at least i have been getting 3% in meantime which was a nice surprise as there is over £50k balance.

Plus Virgin M claim i wont lose any interest as they had a backlog so there was 1 month delay in requesting the transfer. No idea why it is taken 6 weeks and counting for Vanguard to process once Virgin M actioned.

[Deleted User]

Rates had been zero for years, so this was a mute point.

A GIA, you just pull a cash balance and reload when you are ready to invest, you cant do that with a S&S ISA.

Hargreaves Lansdown is looking a better option for me, even with their higher fees. I spend a certain amount of time out the market.

If rates drop, I can always transfer out.

sebtomato

Vanguard have told me that current interest rate paid is BoE rate - 0.25% (so 3.5% - 0.25% = 3.25% currently). Standard platform charges will apply too if applicable (0.15% but capped).

I can confirm that they credited around 3.25% interest in my case today, for cash left on my GIA, for the month of January.

When I withdrew some money before, it took about 1 working day to get to my bank account.

Rheumatoid

If we are now looking at 3.75 might be tempted to take a profit on some of my riskier funds and keep in cash for a bit. A bit concerned they are high anyway - particularly with Putin, Covid variants and Bird Flu jumping Species preying on my mind   

jimjames

peterpies said:

Hargreaves Lansdown is looking a better option for me, even with their higher fees. I spend a certain amount of time out the market.

If rates drop, I can always transfer out.

I'm curious why HL are looking a better option with their higher fees?

[Deleted User]

jimjames said:

peterpies said:

Hargreaves Lansdown is looking a better option for me, even with their higher fees. I spend a certain amount of time out the market.

If rates drop, I can always transfer out.

I'm curious why HL are looking a better option with their higher fees?

Without going into detail, I spend time out of the market. HL pays interest on cash, which is more than their higher fees, especially with the current sign on bonus.

I will at some point in the near future need to open a second account to minimize platform risk, HL are the 'only' other broker who allow expats to buy and sell on existing accounts without forcing closure. I am semi planning to become expat in the future, which may or may not happen.

where_are_we

How quickly will Vanguard increase their interest rate on cash currently about 3.1% to about 3.6%, following today`s base rate increase?

NedS

peterpies said:

jimjames said:

peterpies said:

Hargreaves Lansdown is looking a better option for me, even with their higher fees. I spend a certain amount of time out the market.

If rates drop, I can always transfer out.

I'm curious why HL are looking a better option with their higher fees?

Without going into detail, I spend time out of the market. HL pays interest on cash, which is more than their higher fees, especially with the current sign on bonus.

I will at some point in the near future need to open a second account to minimize platform risk, HL are the 'only' other broker who allow expats to buy and sell on existing accounts without forcing closure. I am semi planning to become expat in the future, which may or may not happen.

I'm using a money market ETF on HL that tracks Sonia (which closely tracks BoE base rate). Have been getting ~3.45% so expecting that to rise to close to 4% now, and no additional fees as I'm already at HL's capped monthly fees. About twice the rate HL are paying on cash - you can guarantee HL will be getting close to 4% on your cash but are only passing on half of it. At least Vanguard are being a little more generous.

[Deleted User]

NedS said:

peterpies said:

jimjames said:

peterpies said:

Hargreaves Lansdown is looking a better option for me, even with their higher fees. I spend a certain amount of time out the market.

If rates drop, I can always transfer out.

I'm curious why HL are looking a better option with their higher fees?

Without going into detail, I spend time out of the market. HL pays interest on cash, which is more than their higher fees, especially with the current sign on bonus.

I will at some point in the near future need to open a second account to minimize platform risk, HL are the 'only' other broker who allow expats to buy and sell on existing accounts without forcing closure. I am semi planning to become expat in the future, which may or may not happen.

I'm using a money market ETF on HL that tracks Sonia (which closely tracks BoE base rate). Have been getting ~3.45% so expecting that to rise to close to 4% now, and no additional fees as I'm already at HL's capped monthly fees. About twice the rate HL are paying on cash - you can guarantee HL will be getting close to 4% on your cash but are only passing on half of it. At least Vanguard are being a little more generous.

What's the name of the ETF? I'll look into it.

I would never use Vanguard, as I buy UK shares.