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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 3 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

VANGUARD CASH RESERVES FEDERAL MONEY MARKET FUND*

This fund invests primarily in securities issued by the U.S. government or its agencies, as well as repurchase agreements with collateral backing of U.S. Treasuries or to a lesser extent mortgage-backed securities.

VANGUARD FEDERAL MONEY MARKET FUND

This fund invests primarily in securities issued by the U.S. government or its agencies, as well as repurchase agreements with collateral backing of U.S. Treasuries or to a lesser extent mortgage-backed securities.

VANGUARD TREASURY MONEY MARKET FUND

This fund primarily invests in U.S. Treasury bills. It's considered one of our most conservative money market funds.

VANGUARD MUNICIPAL 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 June 30, 2020)**

VANGUARD CASH RESERVES FEDERAL MONEY MARKET FUND*

Admiral™ Shares: 0.56%, which outperformed 89% of the fund's peer group in the previous quarter.

Investor Shares: 0.50%, which outperformed 80% of the fund's peer group in the previous quarter.

VANGUARD FEDERAL MONEY MARKET FUND

0.34%, which outperformed 97% of the fund's peer group in the previous quarter.

VANGUARD TREASURY MONEY MARKET FUND

0.35%, which outperformed 97% of the fund's peer group in the previous quarter.

VANGUARD MUNICIPAL MONEY MARKET FUNDS

0.43%–0.54%, based on fund choice, which outperformed 92%–98% of the funds' peer groups in the previous quarter.


Expense ratio (as of June 30, 2020)***

VANGUARD CASH RESERVES FEDERAL MONEY MARKET FUND*

Admiral Shares: 0.10%, which is 60% lower than the industry average.

Investor Shares: 0.16%, which is 36% lower than the industry average.

VANGUARD FEDERAL MONEY MARKET FUND

0.11%, which is 56% lower than the industry average.

VANGUARD TREASURY MONEY MARKET FUND

0.09%, which is 64% lower than the industry average.

VANGUARD MUNICIPAL MONEY MARKET FUNDS

0.15%–0.16%, based on fund choice, which is 40%–44% lower than the industry average.


Minimum initial investment

VANGUARD CASH RESERVES FEDERAL MONEY MARKET FUND*

$3,000

VANGUARD FEDERAL MONEY MARKET FUND

$3,000 (no minimum if you're using the fund as your brokerage settlement fund)

VANGUARD TREASURY MONEY MARKET FUND

$50,000

VANGUARD MUNICIPAL MONEY MARKET FUNDS

$3,000


Account type

VANGUARD CASH RESERVES FEDERAL MONEY MARKET FUND*

This fund can be held in a Vanguard mutual fund account or Vanguard Brokerage Account.

VANGUARD FEDERAL MONEY MARKET FUND

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.

VANGUARD TREASURY MONEY MARKET FUND

This fund can be held in a Vanguard mutual fund account or Vanguard Brokerage Account.

VANGUARD MUNICIPAL MONEY MARKET FUNDS

This fund can be held in a Vanguard mutual fund account or Vanguard Brokerage Account.


Who can invest

VANGUARD CASH RESERVES FEDERAL MONEY MARKET FUND*

Vanguard Cash Reserves Federal Money Market Fund† is available to all investors, including institutions.

VANGUARD FEDERAL MONEY MARKET FUND

Vanguard Federal Money Market Fund† is available to all investors, including institutions.

VANGUARD TREASURY MONEY MARKET FUND

Vanguard Treasury Money Market Fund† is available to all investors, including institutions.

VANGUARD MUNICIPAL MONEY MARKET FUNDS

Vanguard Municipal Money Market Fund†† and our state-specific tax-exempt money market funds†† are only available to individual investors.


Offer checkwriting

VANGUARD CASH RESERVES FEDERAL MONEY MARKET FUND*

No

VANGUARD FEDERAL MONEY MARKET FUND

Yes

VANGUARD TREASURY MONEY MARKET FUND

Yes

VANGUARD MUNICIPAL MONEY MARKET FUNDS

Yes


Other considerations

VANGUARD CASH RESERVES FEDERAL MONEY MARKET FUND*
  • Distributions of income are taxable.
  • Investors with short-term savings goals who don't need frequent transactions may wish to consider this fund.
VANGUARD FEDERAL MONEY MARKET FUND
  • Distributions of income are taxable.
  • Serves as the settlement fund for your brokerage sweep account, which is used to pay for and receive proceeds from any brokerage transactions, including the purchase or sale of Vanguard ETFs®.
VANGUARD TREASURY MONEY MARKET FUND
  • Distributions of income are taxable.
  • Investors who want significant Treasury exposure or the added security of investing in a money market fund in which most of the underlying securities are backed by the full faith and credit of the U.S. government may wish to consider this fund.
VANGUARD MUNICIPAL MONEY MARKET FUNDS
  • Our national municipal money market fund, Vanguard Municipal Money Market Fund, seeks to provide income that's free from federal personal income tax.
  • Our state-specific tax-exempt municipal money market funds are generally free from state and federal income tax, assuming you are a resident of the state that the fund is intended for (for example, a resident of California investing in Vanguard California Municipal Money Market Fund).
  • Investors in a higher tax bracket with a short-term savings goal may wish to consider these funds.

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 $1,000 minimum initial investment.
  • You must buy CDs in your Vanguard Brokerage Account, but there's 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.


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REFERENCE CONTENT

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See how easy it is to place a CD trade online

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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.

© 2016 The Vanguard Group, Inc. All rights reserved.