Hello there! Thinking about closing your Vanguard Cash Plus account? You're not alone. Whether your financial goals have shifted, you've found a better-suited banking solution, or you simply want to consolidate your accounts, the process can seem a bit daunting. But don't worry, we're here to guide you through every single step.
Before we dive in, let's take a moment to understand what's involved. Closing an account isn't just about clicking a button. It's a process that requires a bit of planning to ensure a smooth transition of your funds and to avoid any unexpected fees or delays. Ready to get started on your journey to a more streamlined financial setup? Let's go!
Step 1: Get Your Financial Ducks in a Row
Before you even think about hitting that "close account" button, a little bit of preparation can save you a lot of hassle. Think of this as your pre-flight checklist for a successful account closure.
Sub-heading: Transferring Out Your Funds
The most crucial step is to empty your account. You can't close a Vanguard Cash Plus account with a balance in it. This means you need to transfer all your funds out.
Move all your cash: You can transfer your money to another linked bank account, a Vanguard brokerage account, or a different financial institution. The best way to do this is via an Electronic Bank Transfer (ACH), as it's typically free.
Be aware of hold periods: Keep in mind that new deposits may be subject to a holding period. Vanguard's terms mention a 7-day hold for transactions and a 60-day holding period for cash and check deposits in new accounts to prevent fraud. Make sure any recently deposited funds have cleared before you initiate a full transfer.
Liquidate investments: If you hold any investments within your Cash Plus account, such as money market funds, you'll need to sell them first and transfer the cash.
Sub-heading: Check for Pending Transactions
Are there any scheduled bill payments, recurring deposits, or other transactions linked to your Vanguard Cash Plus account? You need to make sure to cancel or reroute all of them. A single pending transaction can halt the entire closure process. Check your account activity for:
Direct deposits: Your paycheck, for instance.
Automatic bill payments: Utilities, subscriptions, etc.
Automatic transfers: Transfers to or from other accounts.
Step 2: Contact Vanguard
Once your account balance is zero and all transactions are cleared, it's time to officially inform Vanguard of your intention to close the account. While some financial institutions allow you to close an account online, Vanguard's process is a bit more personal to ensure everything is handled correctly.
Sub-heading: The Direct Approach: Calling Them
The most reliable and often fastest way to close your account is to call Vanguard directly.
Get the right number: For personal investors, the number is 877-662-7447. Their Client Services team is available on weekdays from 8 a.m. to 8 p.m., Eastern Time.
Have your information ready: Be prepared to provide your account number and other identifying information to verify your identity.
Ask about the process: A Vanguard representative can walk you through the final steps and confirm that your account balance is zero and there are no pending transactions. They can also tell you if any forms are needed.
Sub-heading: The Digital Route: Secure Messaging
You can also send a secure message through your online account. This can be a good option if you prefer written communication.
Log in to your account: Go to the Vanguard website and log in to your account.
Find the "Secure messages" section: This is typically found in the menu on the left side of your account dashboard.
Compose your message: Clearly state that you wish to close your Vanguard Cash Plus account and that you have already transferred out all the funds.
Note: Vanguard mentions they may place your account in "closing" status for up to 3 months to process any pending fees or dividends and to allow you to access your documents. This is a normal part of their procedure.
Step 3: Confirm and Follow Up
After you've initiated the closure request, it's important to follow up to ensure it has been processed correctly.
Sub-heading: Check Your Account Status
Even after your account is closed, you may still be able to log in to access documents and statements.
Log in to your account: Go to "My Profile" and then the "Product" tab. Here, you should see the status of your account.
Look for a "closed" status: Once the closure is complete, the status should be updated.
Sub-heading: Verify All Funds Are Transferred
Double-check the receiving account to make sure the full balance from your Vanguard Cash Plus account was successfully transferred. A final confirmation can give you peace of mind.
Step 4: Understand the Fees (or lack thereof)
One of the great things about Vanguard is their commitment to low costs. However, it's always good to be aware of any potential fees.
Sub-heading: Account Closure Fees
As per Vanguard's commission and fee schedules, a processing fee of $100 may be charged for each account closure and full transfer of assets to another firm. However, this fee is waived for clients who hold at least $5 million in qualifying Vanguard assets or if the account is enrolled in a Vanguard-affiliated advisory service. Electronic Bank Transfers (ACH) are not subject to this fee. So, if you're just transferring cash out, you likely won't face this charge. It's best to confirm this with the representative when you call.
Sub-heading: Annual Account Service Fees
Vanguard Brokerage charges a $25 annual account service fee, but this fee is often waived for clients who sign up for e-delivery of statements and documents. When you close your account, ensure that any prorated annual fee is taken care of.
10 Related FAQ Questions
How to transfer money out of my Vanguard Cash Plus account?
You can transfer funds out via an Electronic Bank Transfer (ACH) to a linked external bank account or another Vanguard account.
How to check for pending transactions in my Vanguard Cash Plus account?
Log in to your Vanguard account, go to your transaction history or activity log, and look for any scheduled or pending deposits or withdrawals.
How to find my Vanguard Cash Plus account number?
Your account number is available on your account statements and when you log in to your Vanguard account online.
How to contact Vanguard Client Services?
You can reach Vanguard's Client Services for personal investors at 877-662-7447 during their business hours.
How to send a secure message to Vanguard?
Log in to your Vanguard account, navigate to the "Secure messages" section, and compose a new message to the client services team.
How to avoid a closure fee when closing my Vanguard Cash Plus account?
A closure fee is typically only charged for a full transfer of assets to another firm. Transferring cash out via ACH is usually free. Confirm this with a Vanguard representative.
How to access my account statements after my account is closed?
You can typically still log in to your Vanguard account after it is closed to access and download your past statements and tax documents for a certain period.
How to transfer my investments from the Cash Plus account to a brokerage account?
You will need to sell your investments within the Cash Plus account first, and then transfer the cash proceeds to your desired brokerage account.
How to know if my account is fully closed?
After initiating the closure, log in to your account and check the status under "My Profile" or the "Product" tab. It should eventually show a "closed" status.
How to unlink my external bank account from Vanguard?
Once you have transferred out all funds and the account is closed, you can remove the linked bank account information from your Vanguard profile.