What are my savings options at Vanguard?
Consider the Vanguard Cash Plus Account, money market funds, or brokered certificates of deposit (CDs) to save for your short-term goals. Whether you’re saving for a wedding, a dream vacation, or a rainy day, we have something for you.
Compare cash and savings options
Vanguard Cash Plus Account
An FDIC-insured bank sweep and savings account alternative.
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$0 initial minimum investment.
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Connect the Cash Plus Account to payment apps like Pay Pal or Venmo and access your money penalty free.1
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Offers a bank sweep program with FDIC coverage for up to $1.25 million for individual accounts and $2.5 million for joint accounts.2
Money market funds
A low-risk option for your short-term savings.
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$3,000 minimum initial investment requirement.
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Allows you access to your money without penalty in most cases.3
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SIPC insured when held in your Vanguard Brokerage Account.
Average 7-day SEC yield as of —
Brokered CDs
A place to get a fixed interest rate for money you won't need until a set date.
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$1,000 minimum investment requirement.
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Limited accessibility to money depending on CD maturity or secondary market trade.
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FDIC insured.
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Past performance is not a guarantee of future results and the yield can vary at any time. For performance data current to the most recent month-end, visit our website at www.vanguard.com/performance.
See what it costs to invest with Vanguard
Why invest in cash at Vanguard?
If you’re looking for competitive earnings on your savings, cash investments might be your answer. Cash investments can be a great place to have your cash earn money while you save for your short-term goals like going on a vacation, building an emergency fund, or saving for a down payment on a home.
Understand the differences at a glance
Product Type
A savings account alternative with its own unique account and routing number.
You can hold Vanguard money market funds within this account.
What is it?
A cash management account that features a bank sweep with FDIC coverage.
May be appropriate for
Emergency savings, retirement living expenses, or other savings goals and needs.
Cost
$0 to open and $0 for most transfer options.5
See the commission & fee schedules for more information.
Minimum investment amount
$0
Additional investment amounts
$1
Ease of accessing your money (liquidity)
Access your money penalty-free.
You can connect the Cash Plus Account to payment apps like PayPal or Venmo using the account’s unique routing and account number.1
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.2
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.
Product Type
Mutual fund
Available to be held in both a Vanguard Brokerage Account and the Vanguard Cash Plus Account.
What is it?
A mutual fund that invests in cash, cash equivalents, and high-quality, short-term debt securities.
May be appropriate for
Money you'll need within the next 3 to 12 months, unexpected expenses, or goals without time frames.
Cost
$0 to buy or sell online.
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.
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.
Product Type
Brokered CDs
Available to be held in a Vanguard Brokerage Account.
What is it?
Banks and credit unions issue CDs to investment firms at a premium interest rate in return for a lump-sum deposit.
May be appropriate for
Money you'll need in 3 months to 3 years or short-term investment goals with set goal dates.
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 our commission & fee schedules 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 per depositor, per bank by FDIC insurance.
To learn more, visit the FDIC's website.
Product type |
A savings account alternative with its own unique account and routing number. You can hold Vanguard money market funds within this account. |
Mutual fund Available to be held in both a Vanguard Brokerage Account and the Vanguard Cash Plus Account. |
Brokered CDs Available to be held in a Vanguard Brokerage Account. |
| What is it? | A cash management account that features a bank sweep with FDIC coverage. |
A mutual fund that invests in cash, cash equivalents, and high-quality, short-term debt securities. |
Banks and credit unions issue CDs to investment firms at a premium interest rate in return for a lump-sum deposit. |
May be appropriate for |
Emergency savings, retirement living expenses, or other savings goals and needs. |
Money you'll need within the next 3 to 12 months, unexpected expenses, or goals without time frames. |
Money you'll need in 3 months to 3 years or short-term investment goals with set goal dates. |
| Cost | $0 to open and $0 for most transfer options.5 See the commission & fee schedules for more information. |
$0 to buy or sell online. 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. |
| Minimum investment amount | $0 |
$3,000 |
New issues and secondary market: |
| Additional investment amounts | $1 |
$1 |
$1,000 |
| Ease of accessing your money (liquidity) | Access your money penalty-free. You can connect the Cash Plus Account to payment apps like PayPal or Venmo using the account’s unique routing and account number.1 |
Most funds allow you to access your money without penalty. |
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 | The Cash Plus bank sweep offers FDIC coverage up to $1.25 million for individual accounts and $2.5 million for joint accounts.2 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 per depositor, per bank by FDIC insurance. To learn more, visit the FDIC's website. |
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Learn more about cash investments
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Frequently asked questions about cash investments
A liquid asset is something you own that can be easily turned into cash without losing much value. Some examples of liquid assets are cash, government bonds, and stocks. These assets are liquid because you can sell them quickly and get cash when you need it.
Money market funds are investment vehicles that pool money to buy low-risk securities and aim to maintain a stable value of $1 per share. They aren’t bank products and aren’t insured by the government. They may be covered by SIPC insurance when held in a brokerage account. Money market funds don’t have a limit on the number of withdrawals you can make.
High-yield savings accounts are offered by banks and are insured by the government. These accounts provide higher interest rates compared to regular savings accounts. While they may have limits on withdrawals, they offer the security of FDIC insurance.
Money market funds allow you to access your cash whenever you need without any early withdrawal penalties. Their primary goal is to maintain a stable value of $1 per share and though they aren’t insured by the government, they may be covered by SIPC insurance when held in a brokerage account. You can hold money market funds in both the Vanguard Cash Plus Account and a Vanguard Brokerage Account.
On the other hand, when you invest in a CD, you agree to keep your money with the bank for a specific period. CDs provide fixed interest rates that are typically higher than regular savings accounts and are backed by government insurance. At Vanguard, you can only hold brokered CDs in a Vanguard Brokerage Account.
When deciding where to place emergency funds and savings, there are a few options to consider:
- A cash management account, which can offer safety and easy access to your money with higher interest rates than regular savings accounts.
- A money market fund, which invests in low-risk securities and aims to maintain a stable share price.
- CDs are also worth considering, as they offer fixed interest rates and are insured by the government.
The Vanguard Cash Plus Account is different from a high-yield savings account in a few ways. Vanguard isn’t a bank, so we can't offer a high-yield savings account directly. Instead, we offer a cash management account that operates through a partnership with a network of program banks. This partnership allows us to provide features typically only available through banks, such as FDIC insurance and a competitive annual percentage yield (APY) compared to traditional savings accounts.
Similar to select savings accounts, the Vanugard Cash Plus Account also has its own unique routing and account number so you can easily make payments through apps like PayPal and Venmo.1
The Vanguard Cash Plus Account also offers the option to invest in money market funds, providing additional investment opportunities within the account. In contrast, a high-yield savings account is typically offered directly by banks and typically doesn’t offer additional investment options.
Other investing resources
1Some 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.
2Bank 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.
3You 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.
4Yield table results indicate the highest yield to worst for a given security's maturity and rating.
5A low annual account service fee of $25 is waived when you elect e-delivery of certain 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. See the Vanguard Brokerage Services commission and fee schedules for details.
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.
Vanguard Municipal Money Market Fund: 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 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.
Vanguard Cash Reserves Federal Money Market Fund, Vanguard Treasury Money Market Fund, and Vanguard Federal Money Market Fund: 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. 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 during periods of market stress.
Bank deposits and CDs are guaranteed (within limits) as to principal and interest by an agency of the federal government.
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.
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.