What's Vanguard Cash Deposit?
It's an alternative settlement fund option to Vanguard Federal Money Market Fund.1 You can use the cash in your Vanguard Cash Deposit to place trades in your brokerage account. Brokerage accounts have a built-in settlement fund that facilitates all your buying and selling. Using Vanguard Cash Deposit means your cash is eligible for FDIC insurance.
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annual percentage yield2
Vanguard Cash Deposit offers a competitive annual percentage yield (APY) of -% as of -. The APY will vary and may change at any time.
$1.25 M
FDIC coverage3
The cash in your Vanguard Cash Deposit is eligible for FDIC coverage up to $1.25 million for individual accounts and $2.5 million for joint accounts.
$0
no additional fees4 and no minimum balance requirement
There are no additional fees to maintain Vanguard Cash Deposit as a settlement fund option. In addition, there are no limits on how often you can transfer money.
We offer 2 choices for your settlement fund
See the differences between having each product as your settlement fund.5
Vanguard Cash Deposit
Insurance coverage
Eligible for FDIC insurance up to $1.25 million for individual accounts and $2.5 million for joint accounts.3
To learn more, visit the FDIC's website.
$0 initial minimum investment
$1 additional investment amount
Access your money (liquidity) without penalty
Vanguard Federal Money Market Fund (VMFXX)
Insurance coverage
Money market funds held in the Vanguard Brokerage Account are eligible for SIPC coverage. Securities in your brokerage account are protected up to $500,000.
Note: SIPC doesn’t cover losses related to decline in market value.
To learn more, visit the SIPC's website.
$0 initial minimum investment
$1 additional investment amount
Access your money (liquidity) without penalty
Vanguard Cash Deposit |
Vanguard Federal Money Market Fund (VMFXX) |
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Insurance coverage |
Eligible for FDIC insurance up to $1.25 million for individual accounts and $2.5 million for joint accounts.3 To learn more, visit the FDIC'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. |
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| $0 initial minimum investment | |
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| $1 additional investment amount | |
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| Access your money (liquidity) without penalty6 | |
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How does the settlement fund work?
See why it plays a key role in your brokerage account.
Helpful resources
The role of your settlement fund
The role of your settlement fund
What are money market funds?
What are money market funds and how do they work?
Frequently asked questions
All brokerage trades and account transactions go through a broker, like Vanguard Brokerage. Money to pay for your purchases is taken from your sweep account and proceeds from your sales are received in your sweep account.
Vanguard Cash Deposit is a bank product that offers FDIC insurance (subject to applicable limits). Vanguard Federal Money Market Fund is a mutual fund that may be eligible for SIPC protection. Both options strive to provide capital preservation. However, because they’re different types of products, the income they provide may be different. For additional considerations, refer to the Vanguard Bank Sweep Products Terms of Use (PDF).
No. A settlement fund is the same as a sweep account or a cash sweep account.
Vanguard Cash Deposit is a bank product. This means your cash is held at banks in our network that offer FDIC insurance (subject to applicable limits).
Money market funds are mutual funds that are invested in highly liquid short-term debt, such as cash, cash equivalents, and high-quality, short-term debt securities.
Vanguard Bank Sweep Products Terms of Use (PDF)
Participating Program Banks (PDF)
Vanguard Cash Deposit is neither a high-yield savings account nor a brokerage account. It’s an alternate option for your settlement fund, which sits within your brokerage account.
Vanguard Cash Deposit: An FDIC-insured option for your settlement fund within your Vanguard Brokerage Account. Vanguard Cash Deposit offers an APY and can be used as a place to hold your cash for future trades or transactions.
Vanguard Cash Plus Account: An FDIC-insured savings account alternative that offers a bank sweep with a competitive APY and its own unique account and routing number. The account can be linked to payment apps like PayPal or Venmo to access your money.
Learn more about how these products differ
Learn more about Cash Plus
1You 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. 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.
2The annual percentage yield (APY) on Vanguard Cash Deposit is -% as of -. The APY will vary and may change at any time.
3Bank 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 list of participating Program Banks (PDF) for more information. For more information about FDIC insurance coverage, please visit fdic.gov.
4There are no fees or minimum balance requirements associated with Vanguard Cash Deposit as a settlement fund. See the Vanguard Brokerage Services commission and fee schedules for commission and fees applicable to the Vanguard Brokerage Account.
5You can choose between Vanguard Cash Deposit and Vanguard Federal Money Market Fund as your settlement fund. Both options strive to provide capital preservation. However, they may perform differently depending on the interest rate environment.
6Your account may be subject to various restrictions to reduce the risk of fraud. Your transactions may be subject to a 7-day holding period as well as daily transaction limits. Generally, new accounts will be subject to a 60-day holding period for cash and check deposits. During this time, you can invest with this cash, but cash deposits into your account may only be returned to the bank account from which the cash was withdrawn. After the holding period is complete, your funds will be fully available to transfer or withdraw.
When you are enrolled in the Vanguard Cash Deposit program, Eligible Deposits that are swept to Program Banks are not securities, are not cash balances held by VBS, and are not covered by SIPC. Assets swept to Vanguard Federal Money Market Fund are held by VBS, are not covered by FDIC insurance, and are eligible for SIPC coverage. See the Vanguard Bank Sweep Products Terms of Use (PDF) and Vanguard Brokerage Account Agreement (PDF) for more information.
Vanguard Federal Money Market Fund has an expense ratio of 0.11% as of December 31, 2024. Vanguard Cash Deposit's Program Banks pay a fee to VBS for Bank Sweep deposits that is retained by VBS as revenue and reduces the amount of interest paid to depositors.
There may be other material differences between these products that must be considered prior to investing.
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.
All investing is subject to risk, including the possible loss of the money you invest.