The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
The Vanguard Cash Plus Account offers a high interest rate and federal insurance up to $1.25 million for individual accounts. It’s a cash management account, which provides the services and features of checking or savings accounts, but these types of accounts are typically offered by brokerages, not banks. These brokerages sweep customer deposits into accounts at partner banks behind the scenes to provide insurance.
Best for: Vanguard customers who wish to earn a high interest rate and have access to a higher-than-average federal insurance limit on their savings.
Reviewed in: Feb. 2024. Period considered: Feb. 2024.
*Paid non-client promotion
NerdWallet doesn’t invest its money with this provider, but they are our referral partner – so we get paid only if you click through and take a qualifying action (such as open an account with or provide your contact information to the provider). Most importantly, our reviews and ratings are objective and are never impacted by our partnerships. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.
| Where Vanguard falls short |
|---|
Offers a high annual percentage yield. Annual fee is easily waived with e-statements. High federal insurance limit through partner banks.
| |
Checking and savings features
Upsides
High interest rate. With a rate of 4.60% APY, the Vanguard Cash Plus Account rivals the rates found on many high-yield savings accounts.
No minimum balance requirement. The account doesn’t require customers to maintain a minimum balance to keep the account open.
High federal insurance through third-party banks. Vanguard works with partner banks to sweep customer funds into accounts that are insured by the Federal Deposit Insurance Corp. Customers can get up to $1.25 million in insurance on their deposits or up to $2.5 million for a joint account.
Easy way to avoid annual fee. The account comes with an annual fee of $25 that can be waived if you sign up for e-statements.
Unlimited number of transactions. There is no limit to the frequency of transactions that can be made with the account.
High withdrawal limit. Customers can withdraw up to $100,000 in a single business day.
Downsides
No way to withdraw or deposit cash, and no check writing. The only way to move money with the Vanguard Cash Account is through online transfers using your routing and account numbers. The account can also receive direct deposits and mobile check deposits.
Customer experience
Upsides
Solid website and decent app ratings. Vanguard’s website is easy to navigate, and its mobile app has decent ratings in the Apple and Google app stores.
Mobile check deposit available. Customers enrolled in Vanguard Cash Plus are able to fund their account with the Vanguard mobile app.
Downsides
Limited customer service phone hours. Vanguard offers extended daytime hours of 8 a.m. to 8 p.m. Eastern time for phone customer service, but there are no weekend hours.
FAQs
With a rate of 4.60% APY, the Vanguard Cash Plus Account rivals the rates found on many high-yield savings accounts. No minimum balance requirement. The account doesn't require customers to maintain a minimum balance to keep the account open. High federal insurance through third-party banks.
Is a Vanguard cash plus account a good idea? ›
The Vanguard Cash Plus Account is a good fit for you if: You want to do your investing and cash management at one place, Vanguard. You're comfortable operating without check-writing privileges. You're OK with transferring money to another account when you need cash, waiting up to one business day per transfer.
Is the Vanguard cash Plus account a high-yield savings account? ›
The Vanguard Cash Plus account provides a high-yield savings account that, unlike others, can be used to pay most electronic bills.
Why am I not eligible for Vanguard cash Plus? ›
To be eligible to participate in the Cash Plus Account Pilot, You or a joint owner must be an account holder on a VBA. One or more of the Cash Plus Account holders are also required to maintain at least one VBA for as long as the Cash Plus Account is open.
Is a Vanguard cash deposit worth it? ›
Vanguard Cash Deposit: The Details
The current 3.7% APY is a somewhat competitive rate. It's a smidge below some of our best high-yield online savings accounts. But it's better than the rates offered by Fidelity and the notoriously low-interest Schwab.
What is the current interest rate on a Vanguard Cash Plus account? ›
With a rate of 4.60% APY, the Vanguard Cash Plus Account rivals the rates found on many high-yield savings accounts. No minimum balance requirement. The account doesn't require customers to maintain a minimum balance to keep the account open.
Is Cash Plus account safe? ›
Security you can bank on
We're a fully regulated British Bank, with FSCS protection up to £85,000 on eligible deposits. Your account also comes with built-in fraud protection, all day, every day.
What is the APY for Vanguard Cash Plus 2024? ›
The Vanguard Cash Plus bank sweep offers a competitive annual percentage yield (APY) of 4.60% as of May 24, 2024. The APY will vary and may change at any time. You'll pay no fees to open the account and have no minimum balance to maintain. Plus, there are no limits on how often you can transfer money.
What is the downside of a high-yield savings account? ›
As easy as it is to withdraw money from a high-yield savings account, there may be limits to the number of withdrawals allowed per month or year. Going over that limit can incur extra fees. Some banks may even close the account if the withdrawals become excessive and don't meet the terms set by the bank.
Who has the highest paying high-yield savings account? ›
The highest high-yield savings account rates today are offered by First Community Bank (6.00%), MyBankingDirect.com (5.45%), and Sovereign Bank (5.40%). These, along with our picks for the best high-yield savings accounts, offer rates at least 10 times the national average savings rate of 0.89%.
Vanguard's Cash Plus Account offers a 4.7% annual yield on deposited cash. And it comes with $1.25 million in FDIC coverage for individual accounts. That's a compelling FDIC-insured yield compared with traditional high-yield banks.
Why can I not withdraw cash from Vanguard? ›
There are several reasons you might not be able to withdraw. If your money is invested you will have to sell funds first so you have cash available in your account to withdraw to your bank account. Withdrawals can be stopped if: you do not have sufficient cash in your account.
How long does it take to withdraw money from a Vanguard cash account? ›
When you withdraw cash, it can take up to 1 working day to be paid to your bank account. You will see your withdrawal pending under Transactions then Cash statement tab. When this has been sent, you will see it as a completed transaction under the What's gone out column.
What is the difference between Vanguard Cash Plus and Vanguard cash deposit? ›
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.
Is it safe to keep all my money in Vanguard? ›
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.
How do I withdraw money from my Vanguard cash account? ›
Step-by-step to withdrawing money out of your Vanguard Cash Account
- Log in and navigate to 'Cash' ...
- Select 'Withdraw' ...
- Choose the amount you want to withdraw. ...
- Review and confirm your withdrawal. ...
- Wait for funds to be transferred to your linked bank account.
Any cash in your account will earn interest daily and will normally be paid into your account on the first working day of the month.
How does a cash plus account work? ›
How does Cashplus work? Cashplus works the same as a high-street bank. You can open a personal current account that comes with all the features you'd expect from a traditional bank. However, you'll have to pay to open a personal account with Cashplus and there are three different payment options available.
