What's the Vanguard Cash Plus Account?
The Vanguard Cash Plus Account is a cash management account that features a bank sweep insured by the Federal Deposit Insurance Company (FDIC) and offers a competitive yield on your short-term savings. You can use the bank sweep as a low-risk place to keep cash for your immediate needs as well as for emergencies. You also have the option to purchase any of the 5 Vanguard money market funds available in your Cash Plus Account.
Other benefits include:
CHECKLIST
What you need to get started
If 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.
Ready to get started? Open your account now
Want to learn more?
What are cash investments?
What are money market funds?
FDIC vs. SIPC insurance: Understanding the differences
FAQs
Yes, the Vanguard Cash Plus Account is our version of a cash management account. Like other cash management accounts, it includes a bank sweep that moves your cash into a network of program banks, where it's eligible for FDIC coverage. But you're not limited to the bank sweep. You can choose to move money into any of the 5 Vanguard money market funds offered in the account.
Because our cash management account is only available online, it has 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 you to keep your short-term cash at Vanguard. It can complement the Vanguard Brokerage Account, which is appropriate for longer-term investments.
The Vanguard Cash Plus Account comes with an interest-earning bank sweep along with 5 Vanguard money market fund options.
Vanguard Cash Plus bank sweep. This is a cash holding where all your account deposits will go. It sweeps eligible balances to one or more program banks and is eligible for FDIC coverage (up to $1.25 million for individual accounts and up to $2.5 million for joint accounts).** When you make a withdrawal from your account, the money will come from your funds available in your bank sweep.
Vanguard money market funds. You can keep all your money in the bank sweep or diversify into any of the 5 Vanguard money market funds available with the account. Note: Each money market fund has a $3,000 minimum investment.
A money market fund is a type of mutual fund that typically invests in a basket of highly liquid debt instruments, such as short-term U.S. Treasuries or municipal bonds. The objective of money market funds is to provide current income, a stable share price of $1 and, depending on the fund, liquidity. Money market funds are issued in shares and seek to maintain a steady price of $1 per share.
Only the bank sweep is eligible for FDIC coverage, subject to limits. Money market funds held in a brokerage account are considered securities and aren’t eligible for FDIC insurance. However, they may be eligible for protection by the Securities Investor Protection Corporation (SIPC).
We're offering money market funds alongside our all-cash bank sweep so you can choose from a variety of short-term investments if you want to diversify your cash holdings.
While there are no issued checks or ATM cards, we'll provide you with routing and account numbers so you can pay bills, set up direct deposit with your employer, and more. Bill payments can only be made from the available balance in the bank sweep.
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’d 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. Please note that our money market fund options have market yields rather than offer an APY like the Cash Plus bank sweep.
No, there are no minimum balance requirements for the account.
Money in the bank sweep is 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 they might be quicker at times.
No, you can make an unlimited number of transactions.
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 money moves out of the settlement fund to cover investment purchases.
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 $25 is waived when you elect e-delivery of documents. You can sign up for e-delivery during and 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 and are not cash balances held by Vanguard Brokerage Services® (VBS®), earn a variable rate of interest, and are not securities covered by SIPC. 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. VBS will aggregate and allocate Bank Sweep deposits to Program Banks across Vanguard Cash Plus and Vanguard Cash Deposit with identically registered accounts to offer maximum FDIC coverage up to $1.25 million for individual and trust accounts and $2.5 million for joint accounts when at least 5 Program Banks are utilized. VBS will 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 Vanguard Bank Sweep Products Terms of Use (PDF) and list of participating Program Banks (PDF) for more information. For more information about FDIC insurance coverage, please visit fdic.gov.
***Some third-party institutions may not accept the Cash Plus Account routing number for transactions. If you have any issues using the routing number on a third-party website, contact the provider.
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 Fund is only available to retail investors (natural persons). You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including times of market stress.
The Fund is only available to retail investors (natural persons). You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Call 888-885-2306 for questions about the Vanguard Cash Plus Account. We're available Monday through Friday from 8 a.m. to 8 p.m., Eastern time.
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.
The Vanguard Cash Plus Account is a brokerage account offered by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC. Under the Sweep Program, Eligible Balances swept to Program Banks are not securities: they are not covered by SIPC, but are eligible for FDIC insurance, subject to applicable limits. Money market funds held in the account are not guaranteed or insured by the FDIC, but are securities eligible for SIPC coverage. See the Vanguard Bank Sweep Products Terms of Use (PDF) and Program Bank list (PDF) for more information.