What are cash investments?
Cash investments are very short-term investments that tend to be more stable than stocks or bonds. They aim to provide a low-risk option that keeps your money accessible—while you earn a little income for your savings goals. Cash investments include money market funds, CDs (certificates of deposit), and more.
Cash options at Vanguard
We offer more than one kind of cash product at Vanguard.
Vanguard Cash Plus Account
Our Cash Plus Account is an alternative to a traditional savings account. The Cash Plus Account:
- May be appropriate for emergency savings, retirement living expenses, or other savings goals and needs.
- Includes a bank sweep program offering FDIC insurance for up to $1.25 million for individual accounts and $2.5 million for joint accounts.*
- Can be used to pay bills, set up direct deposit with your employer, or connect to payment applications like PayPal and Venmo.
- Allows you to keep all your money in the bank sweep or diversify your cash by investing it in any of the 5 available Vanguard money market funds.
Vanguard money market funds
Our money market funds invest in cash, cash equivalents, and high-quality, short-term debt securities. They also:
- May be appropriate for money you'll need within the next 3 to 12 months, unexpected expenses, or goals without time frames.
- Allow you access to your money without penalty in most cases.
- Focus on maintaining a stable share price.
- Have a $3,000 minimum investment requirement.
- Provide taxable or tax-exempt interest depending on the money market fund you pick.
Brokered CDs
Banks and credit unions issue CDs to investment firms at a premium interest rate in return for a lump-sum deposit. If you're considering investing in a CD, note they:
- May be appropriate for money you'll need in 3 months to 3 years or short-term investment goals with set goal dates.
- Are FDIC-insured for up to $250,000 per account owner for each ownership category at each institution.
- Offer maturities that vary from a few weeks to several years.
- Have a minimum investment requirement of $1,000.
Vanguard Cash Deposit
Vanguard Cash Deposit is a settlement fund option for your Vanguard Brokerage Account that:
- May be appropriate for money you want to keep accessible for trading.
- Offers FDIC insurance for up to $1.25 million for individual accounts and $2.5 million for joint accounts.*
- Gives you another option for your settlement fund in addition to the Vanguard Federal Money Market Fund.
- May be appropriate as a money repository between investments rather than for holding cash long-term.
You must have an existing Vanguard Brokerage Account to enroll.
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Which type of cash investment is best for you?
Vanguard Cash Plus Account | Money market fund | CD | Vanguard Cash Deposit | |
Product type |
A savings account alternative with its own unique account and routing number. |
Mutual fund |
Certificate of deposit |
A new bank sweep option for your settlement fund for the cash you're waiting to invest. |
Cost | There may be low fees for certain types of transactions. See the commission & fee schedules for more information. |
$0 to trade Each money market fund has its own expense ratio. |
New issues: $0 Secondary trades: $1 per $1,000 face amount ($250 maximum) All online sales of CDs before they mature are commission-free. See our commission & fee schedules for other applicable fees |
$0 |
Minimum investment amount | $0 |
$3,000 |
New issues and secondary market: $1,000 |
$0 |
Additional investment amounts | $1 |
$1 |
$1,000 |
$1 |
Ease of accessing your money (liquidity) | Allows you to access your money without penalty whenever you need it. You can connect the Cash Plus bank sweep to payment apps like PayPal or Venmo. |
Most funds allow you to access your money without penalty whenever you need it. |
Returns principal when CD matures. If you need the money before maturity, you can sell the CD in the secondary market. Prices may fluctuate. |
Allows you to access your money without penalty whenever you need it. |
Insurance coverage | The Cash Plus bank sweep offers FDIC coverage up to $1.25 million for individual accounts and $2.5 million for joint accounts.* To learn more, visit the FDIC's website. Money market funds held in the account are not guaranteed or insured by the FDIC, but are securities eligible for SIPC coverage. To learn more, visit the SIPC's website. |
Money market funds and other securities held in the Vanguard Brokerage Account are eligible for SIPC coverage. Securities in your brokerage account are protected up to $500,000. To learn more, visit the SIPC's website. |
Up to $250,000 by FDIC insurance. To learn more, visit the FDIC's website. |
Eligible for FDIC coverage up to $1.25 million for individual accounts and $2.5 million for joint accounts.* To learn more, visit the FDIC's website. |
Money market fund
Product Type
Mutual Fund
Cost
$0 to trade
Each money market fund has its own expense ratio.
Minimum investment amount
$3,000
Additional investment amounts
$1
Ease of accessing your money (liquidity)
Most funds allow you to access your money without penalty whenever you need it.
Insurance coverage
Money market funds and other securities held in the Vanguard Brokerage Account are eligible for SIPC coverage. Securities in your brokerage account are protected up to $500,000.
To learn more, visit the SIPC's website
CD
Product Type
Certificate of deposit
Cost
New issues: $0
Secondary trades: $1 per $1,000 face amount ($250 maximum)
All online sales of CDs before they mature are commission-free.
See Vanguard Brokerage commission schedule for other applicable fees
Minimum investment amount
New issues and secondary market: $1,000
Additional investment amounts
$1,000
Ease of accessing your money (liquidity)
Returns principal when CD matures.
If you need the money before maturity, you can sell the CD in the secondary market. Prices may fluctuate.
Insurance coverage
Up to $250,000 by FDIC insurance.
To learn more, visit the FDIC's website.
Vanguard Cash Plus Account
Product Type
A savings account alternative with its own unique account and routing number.
Cost
There may be low fees for certain types of transactions.
Minimum investment amount
$0
Additional investment amounts
$1
Ease of accessing your money (liquidity)
Allows you to access your money without penalty whenever you need it.
You can connect the Cash Plus bank sweep to payment apps like PayPal or Venmo.
Insurance coverage
The Cash Plus bank sweep offers FDIC coverage up to $1.25 million for individual accounts and $2.5 million for joint accounts.*
To learn more, visit the FDIC's website.
Money market funds held in the account are not guaranteed or insured by the FDIC, but are securities eligible for SIPC coverage. To learn more, visit the SIPC's website.
Vanguard Cash Deposit
Product Type
A new bank sweep option for your settlement fund for the cash you're waiting to invest.
Cost
$0
Minimum investment amount
$0
Additional investment amounts
$1
Ease of accessing your money (liquidity)
Allows you to access your money without penalty whenever you need it.
Insurance coverage
Eligible for FDIC coverage up to $1.25 million for individual accounts and $2.5 million for joint accounts.*
To learn more, visit the FDIC's website.
Learn more about cash investments
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What are money market funds?
See what it costs to invest with Vanguard
Not sure if cash investments are right for you?
Frequently asked questions
First, you'll need to open a Vanguard Brokerage Account. Then you can buy CDs through the Transact link on your account once you’re securely logged in.
Investors often save for retirement, future education, emergencies, and other general savings goals like a car or a home.
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*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 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 Vanguard Bank Sweep Products Terms of Use (PDF) and participating Program Banks (PDF) for more information. For more information about FDIC insurance coverage, please visit fdic.gov.
Bank deposits and CDs are guaranteed (within limits) as to principal and interest by an agency of the federal government.
Bank accounts can offer more liquidity, ATM access, and overdraft protection. You should consider all material differences before choosing to invest.
Although the income from municipal bonds held by a fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax.
All investing is subject to risk, including the possible loss of the money you invest.
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.
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.
When you are enrolled in the Vanguard Cash Deposit program, 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 Vanguard Brokerage Services (VBS). See the Vanguard Bank Sweep Products Terms of Use (PDF) for more information. Assets swept to Vanguard Federal Money Market Fund are held by VBS, a division of Vanguard Marketing Corporation, member FINRA and SIPC. These assets are not covered by FDIC insurance. See the Vanguard Brokerage Account Agreement (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.
All brokered CDs may fluctuate in value between purchase date and maturity date. CDs may be sold on the secondary market, which may be limited, prior to maturity subject to market conditions. Any CD sold prior to maturity may be subject to a substantial gain or loss. Vanguard Brokerage does not make a market in brokered CDs. The original face amount of the purchase is not guaranteed if the position is sold prior to maturity. CDs are subject to availability. As of July 21, 2010, all CDs are federally insured up to $250,000 per depositor, per bank. In determining the applicable insurance limits, the FDIC aggregates accounts held at the issuer, including those held through different broker-dealers or other intermediaries. For additional details regarding coverage eligibility, visit fdic.gov. Vanguard Brokerage imposes a $1,000 minimum for CDs purchased through Vanguard Brokerage. Yields are calculated as simple interest, not compounded. Brokered CDs do not need to be held to maturity, charge no penalties for redemption, and have limited liquidity in a secondary market. If a CD has a step rate, the interest rate of the CD may be higher or lower than prevailing market rates. Step-rate CDs are subject to secondary market risk and often will include a call provision by the issuer that would subject the investor to reinvestment risk. The initial rate of a step-rate CD cannot be used to calculate the yield to maturity. If a CD has a call provision, the issuer has sole discretion whether to call the CD. If an issuer calls a CD, there is a risk to the investor that the investor will be forced to reinvest at a less favorable interest rate. Vanguard Brokerage makes no judgment as to the creditworthiness of the issuing institution and does not recommend or endorse CDs in any way.
You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. 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.
For more information about Vanguard mutual funds or Vanguard ETFs, obtain a mutual fund or an 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.