Vanguard dropping interest on cash to 2.2%

[gotoPzero]

Just a heads up for anyone using cash in their vanguard account they are reducing the interest rate to 2.2%.

Cant say as I am impressed with this!

[Phooey]

I know, just found out last wk. Fk’ing typical. In the process of moving some funds from a previous provider to them because I need to keep in cash for a potential purchase or two this yr. I was quite excited about earning 3.5% on cash in an ISA

[DickP]

Which are the better alternatives now for cash ISA?

[timberman]

Had an email from Vanguard earlier to let me know this is happening

I have quite a bit sat in cash in my pension at the moment so it's not ideal for me,

may have to reconsider my options now,

still better than the measly rate I'm currently getting on the savings in my bank account though.

[timberman]

DickP said:

Which are the better alternatives now for cash ISA?

This just refers to cash sat in a Vanguard account that isn't currently invested anywhere, so not really relevant to cash ISA's.

[richardxjr]

Aviva SIPP is now paying 3.23 on cash (before their 0.40 fee).

[bmwmike]

Yeah not impressed with this either. I think 2.2% is taking the piss, 3% would have been fair and equitable.

Still, its better than the 0% i'm earning in HSBC Sharedealing S&S ISA for cash.

[Phooey]

For those in Vanguard - have you thought about their Money Market Fund? I'm not too familiar with it but noticed it mentioned somewhere else.. just wondered if there are any downsides to it e.g. SONIA concern was mentioned on here not long back, i think??

[bmwmike]

I've been struggling with this myself lately - ultrashort bonds, money-market, or just leave as cash?

[gotoPzero]

I will stay in cash for now the 2^ is not that bad in an ISA

[Harpoon]

I just logged into my BestInvest account and saw:

BI said:

The rate of interest paid on any cash held in your account is about to go up to 3.10% (previously 2.65%) effective 27 February 2023.

May be of interest to people reviewing accounts.