Introducing the Vanguard Cash Plus Account
This pilot offers the following benefits:
4.70%
annual percentage yield
The Vanguard Cash Plus program offers a competitive annual percentage yield (APY) of 4.70% as of August 1, 2023. The APY will vary.
$0
no fees* and no minimum balance requirement
You'll pay no fees to open the account and have no minimum balance to maintain. Plus, there are no limits on how often you can transfer money.
$1.25 million
FDIC coverage**
Rest easy knowing the cash in your Vanguard Cash Plus Account is eligible for FDIC coverage up to $1.25 million for individual accounts and $2.5 million for joint accounts.
Help your money work harder for you with Vanguard Cash Plus
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You can use the Vanguard Cash Plus Program in a lot of the same ways you'd use a regular savings account.
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You'll have a unique account and routing number you can use for paying bills online, setting up direct deposit, and even using payment apps like PayPal and Venmo.
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Whether you're saving for a rainy day, a sunny day, or just managing regular monthly expenses like credit card payments, the Cash Plus Program's competitive return can help your money work harder for you.
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You'll be able to view and manage your Cash Plus balance alongside your longer-term investments—all in one place.
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And because bank sweep program balances can be held at multiple participating program banks, your Cash Plus Program balances are eligible for FDIC coverage that exceeds what you can get at most traditional banks.
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That's the Cash Plus advantage, and that deserves a high five.
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The image fades into a large V and then the Vanguard wordmark.
A disclosure appears at the bottom of the screen. It reads “Bank sweep program balances are held at one or more participating banks, earn a variable rate of interest, and are not covered by SIPC. See the list of participating program banks (PDF). Balances are eligible for FDIC insurance subject to applicable limits.”
A large V closes out the shot as the animation transitions to the red Vanguard logo. Disclosures appear on the screen. They read: “The Vanguard Cash Plus Account is a brokerage account offered by Vanguard Brokerage Services (VBS), a division of Vanguard Marketing Corporation, member FINRA and SIPC. Under the Vanguard Cash Plus program, Eligible Balances are swept to Program Banks. Eligible balances that are swept to Program Banks are not securities; they are not covered by the Securities Investor Protection Corporation (SIPC) but are eligible for insurance by the Federal Deposit Insurance Corporation (FDIC). Eligible Balances swept to Program Banks are the obligations of each Program Bank and are not cash balances held by VBS. See the Bank Sweep Terms of Use (PDF) for more information. You are responsible for monitoring the total assets you hold at each Program Bank for FDIC coverage and limitations. These total assets will include not only Eligible Balances under the Bank Sweep but also any other deposits you may hold at those banks. For more information about FDIC insurance coverage, please visit fdic.gov. Savings accounts may have characteristics that differentiate them from bank sweep programs offered by Vanguard Cash Plus. For example, they may offer overdraft protection, ATM access (immediate access to your money), and other convenience features. Each company’s products differ, so it's important to ask questions to understand account features. All investing is subject to risk, including the possible loss of the money you invest. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC. ©2023 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor of the Vanguard Funds.”]
Other benefits of the pilot offer include:
CHECKLIST
What you need to get started
Because you're a client, we'll prefill some of your information, but you may need to provide additional details, including:
- Bank information.
- Account objectives.
- Employment status.
- Personal information for any joint account owners.
Note: To open a joint Vanguard Cash Plus Account, both owners should have existing Vanguard Brokerage Accounts.
Ready to get started? Open your account now
FAQs
Currently, the opportunity to open a Vanguard Cash Plus Account is by invitation only to select Vanguard clients. We'll continue to roll out the product to clients over time. To be eligible, you must have at least one Vanguard Brokerage Account. For a joint account, both owners should have existing Vanguard Brokerage Accounts.
Yes, the Vanguard Cash Plus Account is our version of a cash management account. Like other cash management accounts, it sweeps your cash into a network of Program Banks where your money is eligible for FDIC coverage. Because they're only available online, cash management accounts have several advantages, including the ability to offer above-average interest rates and lower (or no) fees. Each company's products differ, so it's important to understand which account features are most important to you.
The Vanguard Cash Plus Account allows clients to keep their short-term cash at Vanguard, and the Cash Plus program provides FDIC coverage, subject to applicable limits, and strives to provide a competitive APY. It can complement the Vanguard Brokerage Account, which is appropriate for longer-term investments.
Depending on your goals, you may want a mix of products for your short-term cash, or you may want it all in one place. Here's a guide to help you choose:
Vanguard Cash Plus Account
What it is: An alternative to a traditional savings account, with bank sweep, a competitive APY, and access to FDIC insurance. It provides you with an account/routing number you can use to pay bills, set up direct deposit with your employer, and use with payment apps like PayPal and Venmo.
Intended for: Money you're intentionally saving in a nonretirement account. May be a good option for big expenses such as a new home or renovation. Also may be appropriate for emergency funds or retirement living expenses.
About the yield: The APY is unlikely to change every day, but it will vary depending on several factors. For example, when the Federal Reserve raises or lowers interest rates, you'll probably see a change in the rate. This is different from a money market mutual fund, which has a yield that changes daily.
Money market fund
What it is: A mutual fund that invests in low-risk, short-term debt, such as government securities. You can choose from taxable or tax-exempt funds. While they and other securities in your brokerage account are not eligible for FDIC insurance, they are covered by the Securities Investor Protection Corporation (SIPC).
Intended for: Money you want in a low-risk investment in your IRA or nonretirement brokerage account. Like the Cash Plus Account, money market funds may be a good choice for savings you use for large expenses or emergency funds. In addition, they can help you balance your retirement portfolio, especially when you're close to (or in) retirement.
About the yield: The yield on money market funds goes up or down daily, depending on the underlying securities.
Vanguard Cash Deposit
What it is: A bank sweep option you can use for your settlement fund. Your settlement fund holds money in your Vanguard Brokerage Account before or after you make trades. At Vanguard, your settlement fund options are either Vanguard Federal Money Market Fund or Vanguard Cash Deposit. Vanguard Cash Deposit is a bank product and offers FDIC insurance. Vanguard Federal Money Market Fund invests in short-term U.S. government securities, and while it and other securities in your brokerage account are not eligible for FDIC insurance, they are covered by the Securities Investor Protection Corporation (SIPC). Both options strive to provide capital preservation; however, they may perform differently depending on the interest rate environment.
Intended for: Money you want to keep accessible for trading or other purposes. Keeping some cash in the settlement fund can make the trading process go more smoothly, because you'll be more likely to have money to pay for purchases on the settlement date.
About the yield: The APY is unlikely to change every day, but it will vary depending on several factors. For example, when the Federal Reserve raises or lowers interest rates, you'll probably see a change in the rate. This is different from a money market mutual fund, which has a yield that changes daily.
No, this account doesn't offer checks or an ATM card. We'll provide you with routing and account numbers so you can pay bills, set up direct deposit with your employer, and more.
The APY is based on current market conditions. It can move up or down depending on a variety of factors, including the Federal Reserve raising or lowering interest rates. We're committed to offering you value on the cash in your Cash Plus Account.
We would like to offer competitive products that help you meet your goals. Vanguard isn't a bank, and certain products—like those offering FDIC insurance—are only available through banks. In the Vanguard tradition of passing on value to our clients, we've committed to using this new offer to provide you with a competitive APY.
The Federal Deposit Insurance Corporation (FDIC) insures client funds against bank failure. FDIC insurance is only available through banks. Since many of our clients ask about FDIC insurance coverage, we're excited to be offering it through our partnership with participating Program Banks.
Account holders are eligible for FDIC insurance up to $1.25 million for individual accounts and $2.5 million for joint accounts.**
Transfers (including from one Vanguard account to another) generally take 2–3 business days, but at times may be quicker.
No, there are no minimum balance requirements.
No, there are no transaction limits.
No. The settlement fund in your Vanguard Brokerage Account holds money for making trades. It can be a good place for cash you're waiting to invest, since you can quickly move money out of this fund to purchase an investment.
The Vanguard Cash Plus Account is different. It's designed as an alternative to your savings account—a place where you hold money you're intentionally saving.
*A low annual account service fee of $20 is waived when you elect e-delivery of documents. You can sign up for e-delivery after the process of opening an account. There may be low fees for certain types of transactions.
**Bank Sweep program balances are held at one or more Program Banks, earn a variable rate of interest, and are not covered by SIPC. See the list of participating Program Banks (PDF). Bank Sweep deposits are covered by FDIC insurance up to $250,000 per insurable category of ownership at each Program Bank, when aggregated with all other deposits held by you at such bank and in the same insurable category. Vanguard Brokerage Services (VBS) will aggregate and allocate Bank Sweep deposits to Program Banks across Vanguard Cash Plus and Vanguard Brokerage Accounts with like registrations to offer maximum FDIC coverage up to $1.25 million for individual accounts and $2.5 million for joint accounts when at least 5 program banks are utilized. VBS will aggregate and allocate Bank Sweep deposits for trust accounts at the account level and not at the beneficiary level. FDIC coverage may be decreased based on Program Bank limits and whether you've opted out of any Program Banks and is subject to applicable FDIC coverage limits. You are solely responsible for monitoring the aggregate amount that you have on deposit at each Program Bank in connection with FDIC limits, including through other accounts at VBS. See the Bank Sweep Products Terms of Use (PDF) for more information.
Call 800-242-7455 for questions about the Vanguard Cash Plus Account. We're available Monday through Friday from 8 a.m. to 8 p.m., Eastern time.
For more information about Vanguard funds or ETFs, obtain a Vanguard mutual fund or Vanguard ETF prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
†The Vanguard Cash Plus Account is a brokerage account offered by Vanguard Brokerage Services (VBS), a division of Vanguard Marketing Corporation, member FINRA and SIPC. Under the Vanguard Cash Plus program, Eligible Balances are swept to Program Banks. Eligible Balances that are swept to Program Banks are not securities: They are not covered by the Securities Investor Protection Corporation (SIPC) but are eligible for insurance by the Federal Deposit Insurance Corporation (FDIC). Eligible Balances swept to Program Banks are the obligations of each Program Bank and are not cash balances held by VBS. See the Bank Sweep Terms of Use (PDF) for more information. You are responsible for monitoring the total assets you hold at each Program Bank for FDIC coverage and limitations. These total assets will include not only Eligible Balances under the Bank Sweep but also any other deposits you may hold at those banks. For more information about FDIC insurance coverage, please visit fdic.gov.
Savings accounts may have characteristics that differentiate them from bank sweep programs offered by Vanguard Cash Plus. For example, they may offer overdraft protection, ATM access (immediate access to your money), and other convenience features. Each company's products differ, so it's important to ask questions to understand account features.
There may be other material differences between products that must be considered prior to investing.
All investing is subject to risk, including the possible loss of the money you invest.