Auto bill pay through vanguard money market?

[billygoatjohnson]

I just got a new insurance quote for the farm, home, and vehicle. I can pay a year lump sum, or monthly. No discount by paying lump sum. In the past I paid lump because interest rates were trash. Now, with interest rates at 4.5% like Vanguard VMFXX. It dawned on me I should pay monthly. My current bank pays 0% for my checking account, I have a high interest checking/savings at another bank paying around 3.5%. I believe I could use that up to 6 transactions a month as an alternative (edit looks like no limit on transactions)

So the question is can you set up auto bill pay thru vanguard? Utilities? Credit card? Insurance? Etc?

[achvfi]

I think it is too small of a gain to worry about. But why not pay from your checking account where you get your pay or have money for monthly expenses and transfer from money market fund as needed to it.

[billygoatjohnson]

I think it is too small of a gain to worry about. But why not pay from your checking account where you get your pay or have money for monthly expenses and transfer from money market fund as needed to it.

I keep most of my cash at VMFXX or VUSXX, it's annoying transferring money every month or remembering. I guess I could figure out an estimate of total monthly autopays and set a reminder and do it a few days before hand...

My insurance is around $3,000 a year. With 12 monthly payments that would make an average balance in the bank of $1,500 (or so I believe). $1,500 x .045 = $67.5. If my math is correct. This is worth it to me! It is after all Mr Money Mustache. Not bogleheads talk me out of buying a $5,000 watch or SUV or Tesla, or $1,500 coffee machine :p

It looks like my alternative bank that pays 3.5% is not a checking account with physical checks but a savings. I could still do auto pay. Wish I could get the 4.5% and write out checks from that account as well. Have EVERYTHING under one roof.

[secondcor521]

Vanguard doesn't do bill pay from their accounts as far as I know.  They're an investment custodian, not a bank.

You can set up an automatic transfer on a monthly basis from Vanguard to an outside bank account.  So if you watch your checking account balance, you could either do an as-needed transfer, a scheduled transfer of an average amount, or a mixture of the two.

[billygoatjohnson]

Vanguard doesn't do bill pay from their accounts as far as I know.  They're an investment custodian, not a bank.

You can set up an automatic transfer on a monthly basis from Vanguard to an outside bank account.  So if you watch your checking account balance, you could either do an as-needed transfer, a scheduled transfer of an average amount, or a mixture of the two.

This could work! An auto transfer would be acceptable. I would just need to make sure I don't keep the checking account too low and I do watch these things like a hawk. I haven't used the autopay or auto buy option at Vanguard before so this is cool!

I found some higher interest at alternative banks checking accounts. But kinda like the banks I'm at and don't like these weird ones, esp in todays uncertain times. https://www.nerdwallet.com/best/banking/checking-accounts