Vanguard interest rates on investment accounts (SIPPs and ISAs) cash balances

dealyboy

 Moneyweek Friday 10th March p22 'Earning a higher rate on cash'

“... Vanguard quietly used to pay base rate minus a small deduction, which amounted to more than you could get in any cash ISA. However, after that got splashed all over various personal finance forums last month, the platform changed its terms and will now pay a fixed rate from later this month, initially set at 2.2%. ...”

... hands up ... who's been talking out of doors?

mark_cycling00

It's possible that some "stress tests" fail or regulations get stretched if thousands of people start using their investment platform as an easy access ISA 

It would be nice if vanguard offered better short-term money funds that effectively offer the ISA rates people are looking for 

Albermarle

Or that Vanguard is an investment platform, and they did not want too many people maybe transferring to them and just holding large amounts of cash, so reduced the rate more in line with their competitors.

GeoffTF

mark_cycling00 said:

t would be nice if vanguard offered better short-term money funds that effectively offer the ISA rates people are looking for 

You can use the Vanguard Sterling Short-Term Money Market Fund:

https://www.vanguard.co.uk/professional/product/fund/money-market/9974/sterling-short-term-money-market-fund-investor-gbp-income-shares

That has been returning an annualised rate of 3.2%-3.3% over the last three months. That compares well with the best instant access Cash ISA (3.1% Paragon Bank), even after the 0.15% platform fee. There are money market funds returning more, but the risk is likely to be higher.

ChilliBob

I hold my hands up here!

Twas on Monevator and I thought it too MSE  it to share it on here. It prompted a healthy discussion runing a few pages, towards the end it got pulled. 

Whilst I'd like to think mse forums are all powerful, I sense if the thread came into it in any way it was in an infinitesimally small one! 

charlie12525

Anyone know the exact date of the interest reduction?

Jmc85

I had an email from Vanguard on 13 Feb - i've had nothing since... (but we aren't past the dates below yet - bizarre they couldn't mention the date)

When this change is happening

We cannot confirm the exact date yet. However, it will be between 13th to 27th March 2023. We will let you know as soon as the change has taken place.

Swipe

They said they would let us know. I seem to recall 13th March being mentioned.