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Interest rates are rising. That means you should be earning more interest on your cash savings. If you're not, your bank or brokerage firm may be shortchanging you.

What they're doing and the difference it makes

Bank savings accounts

Pocketing the earnings. When interest rates rise, banks can either increase their profits or pass higher earnings on to you. Many banks have been slow to pass on those earnings. Below you can see the current difference between putting your cash in a bank account instead of a Vanguard money market fund.

2.08% Vanguard Money Market Funds Average* - 0.09% Savings Accounts Average*
Brokerage sweep accounts

Moving your money so they can make more. Some brokerage firms automatically sweep idle cash from your brokerage settlement fund into a low-yield bank account. Bank sweep accounts are a legal (but sneaky) way to profit on investors' cash. Compare the difference between Vanguard's settlement fund and Schwab's sweep account.

2.02% Vanguard Federal Money Market Fund** - 0.03% Schwab Sweep Account***

*The average SEC yield (as of September 30. 2018) of Vanguard taxable money market funds is 2.08%. According to bankrate.com, bank savings accounts had a national average annual percentage yield (APY) of 0.09% (as of September 30. 2018).

**As of October 1, 2018, the 7-day SEC yield for Vanguard Federal Money Market Fund was 2.02%.

***The Schwab Bank Sweep feature for retirement and brokerage paid 0.30% on uninvested cash balances less than $1 million as of October 1, 2018.


Ready to make the switch?

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We're taking a stand for investors

Not everyone's out to make a buck at your expense. Some people–and companies–have your best interests at heart. Vanguard's one of them. Our company structure is designed to align our interests with those of our investors.

This is about more than cash returns. It's about doing the right thing for investors. We're urging you to check your accounts. This is the first time in years you've had the opportunity to earn higher rates on your cash. Make sure you're the one getting the benefits.

Know your options

When interest rates rise, Vanguard money market funds send the financial benefits right back to you in the form of higher yields.

What difference does it make where you're stashing your cash? Here's how Vanguard money market funds stack up against other investment options.

100%

100% of Vanguard money market funds performed better than their peer-group averages over the past 10 years.1

50%

The average expense ratio on Vanguard's money market funds is 50% less than the industry average.2

20X

Vanguard money market funds return 20X the national savings account average.3

6X

Vanguard money market funds return 6X more than our competitor's sweep account.4

1For the 10-year period ended June 30, 2018, 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: 0.26%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of September 30, 2018.

3The average SEC yield (as of September 30, 2018) of Vanguard taxable money market funds is 2.08%. According to bankrate.com, bank savings accounts had a national average annual percentage yield (APY) of 0.09% (as of September 30. 2018).

4As of October 1, 2018, the 7-day SEC yield for Vanguard Federal Money Market Fund was 2.02%. The Schwab Bank Sweep feature for retirement and brokerage paid 0.30% on uninvested cash balances less than $1 million as of October 1, 2018.

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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 $1.00 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.

Vanguard is client-owned, meaning the company is owned by its funds, which in turn are owned by their shareholders.

Bank deposits are guaranteed (within limits) as to principal and interest by an agency of the federal government. There may be other material differences between products that should be considered before investing.

Vanguard Federal Money Market Fund has a 0.11% expense ratio (as of October 1, 2018) and invests mostly in short-term, U.S. government securities, including Treasures 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.

The Schwab Bank Sweep account 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, and free checks and other cash management features. APY: 0.30%–0.60% for retirement and brokerage accounts as of October 1, 2018.