Vanguard to end its small cash-management service

Bank-like program was being used by just 2% of eligible customers

Mar 4, 2019 @ 1:20 pm

By InvestmentNews

Vanguard Group will end a service for larger customers on July 31 that lets them write checks and pay bills from a Vanguard account.

The VanguardAdvantage program was launched in 2002 as a way to compete with banks. Customers who had between $500,000 and $1 million at Vanguard were charged an annual fee, while it was free for those with at least $1 million invested.

Less than 2% of eligible clients are using it, according to a Wall Street Journal report, and only half were active users in recent months.

In a letter to clients obtained by the Journal, Vanguard said it regretted any inconvenience that ending the program may cause customers. Separately, it said it is exploring other cash management options it may offer.

While only a tiny portion of Vanguard customers may have used the program, the news of its demise has generated 270 comments on, a web forum for investors who use Vanguard funds.

Many commenters expressed their disappointment. "The Advantage Account served my needs well," said a Boglehead with the monicker jimcrawford01. "I will now seek alternatives for my investing needs. Been a good 43 years with Vanguard."

Others discussed possible alternatives to VanguardAdvantage.

(More: Vanguard using ETF portfolios to turn advisers into life coaches)


What do you think?

View comments

Most watched


Young professionals see lots of opportunity to reinvent the advice experience

Members of the 2019 InvestmentNews class of 40 Under 40 have strategies to overcome the challenges of being young in a mature industry.


Young advisers envision a radically different business in five years

Fintech and sustainable investing are two factors being watched closely by some of the 2019 class of InvestmentNews' 40 Under 40.

Latest news & opinion

New Jersey fiduciary rule: Pressure leads to public hearing, comment deadline extension

Industry push results in chance to air grievances on July 17 and another month to present objections.

InvestmentNews' 2019 class of 40 Under 40

Our 40 Under 40 project, now in its sixth year, highlights young talent in the financial advice industry. These individuals illustrate the tremendous potential of those coming up in the profession. These stories will surprise, entertain, educate and inspire.

Galvin to propose fiduciary rule for Massachusetts brokers

The secretary of the commonwealth is proposing a fiduciary standard in response to an SEC investment-advice rule he views as too weak.

Summer reading recommendations from financial advisers

Here are some books that will keep you informed and entertained during summer's downtime

4 strategies for Roth conversions

There's never been a better time to do a Roth conversion, and here are several ways to go about it.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print