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Vanguard money market funds:
You and your cash deserve the best

You work hard for your cash. Now make your cash work for you by investing with Vanguard in a lower-risk, easily accessible money market fund.

100% of Vanguard money market funds performed better than their peer-group averages over the past 10 years.1 And the average expense ratio on Vanguard’s money market funds is 50% less than the industry average.2

Already investing your cash in a brokerage or savings account? See how it compares.

Brokerage Accounts

Brokerage accounts: Know what you're getting

If you have a brokerage account, you know the importance of investing thoughtfully. But many investors wind up with a large portion of assets in low-yield cash accounts. How? Some investment firms use low-yield accounts to house cash earmarked for savings or future trading. Not at Vanguard. We automatically put this money into the highly competitive Vanguard Federal Money Market Fund where it can grow.

2.14%
Vanguard Federal Money Market Fund*

1.83%
Fidelity Government Money Market Fund**

0.18%
Schwab's cash sweep feature***

*The 7-day SEC yield as of August 12, 2019, for Vanguard Federal Money Market Fund.

**The 7-day SEC yield as of August 12, 2019, for Fidelity Government Money Market Fund.

***The annual percentage yield (APY) as of August 2, 2019, for the Schwab Bank Sweep feature (for retirement and brokerage accounts) on uninvested cash balances less than $1 million.

Savings Accounts

Savings accounts: Is your cash sitting—or growing?

Still have your cash in a bank account—or stashed under your mattress? While banks and bank accounts may offer additional features over a money market, you may be missing out on potential earnings. See the difference between putting your cash in a bank account or investing it in a Vanguard money market fund.

2.18%
Vanguard Prime Money Market Fund

0.09%
Savings account average

0.0%
Under your mattress

The 7-day SEC yield for Vanguard Prime Money Market Fund and, according to the FDIC weekly national rates and rate caps External site, the national average savings account rate, which doesn't include credit unions. Figures as of August 12, 2019.

The SEC yield is the average amount earned by a money market fund's investors (after expenses) over the past 7 days and then multiplied into an annual figure. APY is the total interest earned on a bank product in 1 year, assuming no funds are added or withdrawn. One big difference is that SEC yields don't take into account compounding, which makes them seem lower when compared directly to APYs. To account for that, money market funds also report a "compound yield," which can be compared with an APY.

Bank sweep and savings accounts can have characteristics that differentiate them from other cash investments. For example, bank accounts have FDIC protection, which means bank deposits are guaranteed (within limits) as to principal and interest by an agency of the federal government. Additionally, 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, minimums, and potential withdrawal fees.

1For the 10-year period ended June 30, 2019, 9 of 9 Vanguard money market funds outperformed their Lipper peer-group averages. Results will vary for other time periods. Only money market funds with a minimum 10-year history were included in the comparison. Source: Lipper, a Thomson Reuters Company. The competitive performance data shown represent past performance, which is not a guarantee of future results. View fund performance

2Vanguard average money market expense ratio: 0.13%. Industry average money market expense ratio: 0.29%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2018.

All investing is subject to risk, including the possible loss of money you invest.

Vanguard Prime, Federal, and Treasury Money Market Funds: You could lose money by investing in the funds. Although the funds seek to preserve the value of your investment at $1 per share, they cannot guarantee they will do so. An investment in the funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The funds' sponsor has no legal obligation to provide financial support to the funds, and you should not expect that the sponsor will provide financial support to the funds at any time. Vanguard Prime Money Market Fund is only available to retail investors (natural persons). Vanguard Prime Money Market 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.

REFERENCE CONTENT

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Vanguard's settlement fund & Schwab's sweep feature

Vanguard Federal Money Market Fund has a 0.11% expense ratio (as of December 31, 2018) and invests mostly in short-term U.S. government securities, including Treasuries and agencies. A $3,000 minimum initial investment is required for a mutual fund account (no minimum if you're using the fund as your brokerage settlement fund). Account service fees may apply. 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. 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.

Fidelity® Government Money Market Fund has a .42% expense ratio as of June 29, 2019. It normally invests in at least 99.5% of total assets in cash, U.S. Government securities and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash or government securities). 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 insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund's sponsor, have 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.The fund will not impose a fee upon the sale of your shares, nor temporarily suspend your ability to sell shares if the fund's weekly liquid assets fall below 30% of its total assets because of market conditions or other factors.

The Schwab Bank Sweep feature is FDIC-insured up to $250,000 per depositor, per insured institution, based on account ownership type, and has no account service fees. The Bank Sweep feature includes access to additional features such as ATM access, online bill pay, free checks, and other cash management features. APY as of August 2, 2019: 0.18% -0.61% for retirement and brokerage accounts.