Manage your cash investments
We have several options for your short-term investment needs.
Why invest in cash?
Cash investments are very short-term reserves that seek to preserve your savings.
They can be a great choice if you're still deciding how to invest your money or if you'll need to spend it within the next 3–6 months.
Our cash offerings
If you're looking for a cash investment, we have several products to help you reach your goals.
Vanguard money market mutual funds
Our money market funds seek to maintain a stable $1 share price. These funds are highly liquid and flexible. You can quickly transfer money between your bank account and money market account. And, unlike certificates of deposit (CDs), you won't be subject to penalties for withdrawing your money early.
We offer 3 taxable and 5 tax-exempt money market funds.
CDs
When you buy a CD, you invest money with an issuer, typically a bank, for a set period of time. The issuer promises to repay you, plus interest, at a specified interest rate when that time frame is up, known as the "maturity date."
The money you invest in CDs, up to $250,000, is safe because it's insured by the federal government through FDIC insurance, unlike money market funds. However, if you need your cash back before the CD matures, you'll pay an interest penalty. CDs bought through a Vanguard Brokerage Account can be sold before maturity, but may be subject to gains or losses.
More information about money market funds
See the table below to compare our money market funds.
Strategy
This fund invests in a wide range of short-term, high-quality securities. It has the most investment flexibility and the highest potential yield of any of our money market funds.
This fund invests mostly in short-term, U.S. government securities, including Treasuries and agencies.
This fund invests in U.S. Treasury bills only. It's considered one of our most conservative money market funds.
These funds invest in a range of short-term, high-quality, tax-exempt securities. State-specific funds are designed for residents of those states and can provide additional tax benefits depending on investors' tax brackets.
Average 7-day yield (as of December 31, 2019)*
1.82%, which outperformed 88% of the fund's peer group in the previous quarter.
1.71%, which outperformed 98% of the fund's peer group in the previous quarter.
1.74%, which outperformed 98% of the fund's peer group in the previous quarter.
1.00%–1.16%, based on fund choice, which outperformed 69%–95% of the funds' peer groups in the previous quarter.
Expense ratio (as of December 31, 2019)**
0.16%, which is 38% lower than the industry average.
0.11%, which is 58% lower than the industry average.
0.09%, which is 65% lower than the industry average.
0.15%–0.16%, based on fund choice, which is 47%–50% lower than the industry average.
Minimum initial investment
$3,000
$3,000 (no minimum if you're using the fund as your brokerage settlement fund)
$50,000
$3,000
Account type
This fund can be held in a Vanguard mutual fund account or Vanguard Brokerage Account.
This fund can be held in a Vanguard mutual fund account or Vanguard Brokerage Account.
It's the only Vanguard money market fund that's available as a brokerage settlement fund.
This fund can be held in a Vanguard mutual fund account or Vanguard Brokerage Account.
These funds can be held in a nonretirement Vanguard mutual fund account or Vanguard Brokerage Account.
Who can invest
Vanguard Prime Money Market Fund† is only available to individual investors.
Vanguard Federal Money Market Fund†† is available to all investors, including institutions.
Vanguard Treasury Money Market Fund†† is available to all investors, including institutions.
Vanguard Municipal Money Market Fund† and our state-specific tax-exempt money market funds† are only available to individual investors.
More information about CDs
If you're thinking about buying a CD, there are a few important things to know:
- Yields are based on the maturity dates of the CDs.
- CDs have a $10,000 minimum initial investment.
- You must buy CDs in your Vanguard Brokerage Account, but there is no commission for new CD issues. See our commission schedule
- CDs sold before maturity through a broker may be subject to gains or losses.
Interest doesn't compound at Vanguard and is calculated on a simple basis. That means that you'll receive the percentage amount of interest each year that's stated on the CD (coupon or interest rate) multiplied by the principal amount you own. Vanguard's rates are simple rates, and the interest is paid back to your brokerage settlement fund. That interest will then earn interest in your money market brokerage settlement fund.
We're here to help
Have questions? Contact us
REFERENCE CONTENT
Read the transcript
If you want to invest in new issue certificates of deposit—also known as CDs—consider buying them through Vanguard Brokerage instead of shopping at various banks.
Through Vanguard Brokerage Services, you can shop for CDs from banks across the country, giving you a wide range of options and competitive rates. Plus, you'll have the convenience of holding all your investments, including CDs, in one account.
We making buying CDs through our website easy.
Start by logging on to your account at vanguard.com and navigating to the brokerage account you want to buy a CD in. Then, click "Trade bonds or CDs" from the "Buy and sell" dropdown menu for your brokerage holdings.
On the "Find CDs and bonds" screen, you can choose from a wide range of maturities from 1 month to 10 years. The rates you see are the highest rates available for that specific maturity.
Click the percentage rate under your desired maturity to see our list of CDs for that term.
On the next screen, you'll see several CDs sorted by interest rate, with the highest rate at the top of the list.
Click the bank name, or "Buy" link, to see details for that CD.
You'll then see a full product description, including the CD's maturity, issuing bank, coupon dates, and payment frequency. For more information on CDs, or the terms used on this page, click "Glossary" or "Learn more about certificates of deposits."
If you're ready to invest, click "Buy" on the upper-right side of the screen.
On the "Buy order" screen, review your order information and read and agree to the terms in the shaded box.
Next, enter the quantity of CDs you'd like to buy. Keep in mind that new issue CDs are sold in $1,000 increments. Therefore, if you buy 10 CDs, you're investing $10,000, which is the Vanguard Brokerage minimum purchase for CDs.
If you're investing more than $250,000 in CDs, consider buying CDs from multiple banks. Since each bank carries FDIC insurance, you can get up to $250,000 in coverage at each bank you buy a CD from.
Click "Calculate" to update your order details. If you're ready to proceed, click "Continue."
Finally, you'll see a summary of your order information on the "Review and submit" screen. It's important to ensure that all the information is correct and you've read and understand all the important information on the page before you submit your order.
That's it. You've placed your order. You'll see your order number on the "Order summary" screen.
You can check on your purchase in the "Order status" area of the website. Your order is complete when it's "executed."
You will own, and pay for, your CDs on the settlement date.
If you need help buying a CD or building a CD ladder, just call a Vanguard Brokerage specialist at 800-669-0514. Thank you for investing with us.
Important information:
All investing is subject to risk, including the possible loss of the money you invest.
All CDs are federally insured up to $250,000 per depositor per bank. For additional details regarding coverage eligibility, visit fdic.gov
Vanguard Brokerage Services (VBS) has provided availability to the Alternative Trading Systems operated by Tradeweb Markets LLC ("Tradeweb") and to other content provided by Tradeweb. Tradeweb provides access to certain municipal bond information from DPC Data. Tradeweb and DPC Data are third parties and are not affiliated with VBS. While VBS provides access to Tradeweb's Alternative Trading Systems, VBS has no control over actions taken by Tradeweb.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and aren't protected by SIPC.
Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation (VMC), member FINRA and SIPC.
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