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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.
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Offers a high annual percentage yield. Annual fee is easily waived with e-statements. High federal insurance limit through partner banks.
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Checking and savings features
Upsides
High interest rate. With a rate of 4.70% 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.
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
The Vanguard Cash Plus Account is a cash management account that features a bank sweep insured by the Federal Deposit Insurance Company (FDIC) and offers a competitive yield on your short-term savings.
Is the Vanguard cash Plus account a high yield savings account? ›
High interest rate. With a rate of 4.70% 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.
Can I withdraw money from Vanguard cash plus account? ›
You may, subject to limitations: (i) Withdraw from Your Cash Plus Account. (ii) Make deposits to Your Cash Plus Account. (iii) Transfer funds between Your Cash Plus Account and certain other brokerage accounts.
Is Vanguard cash deposit a good idea? ›
Vanguard Cash Deposit
May be appropriate for money you want to keep accessible for trading. Offers FDIC insurance for up to $1.25 million for individual accounts and $2.5 million for joint accounts.* Gives you another option for your settlement fund in addition to the Vanguard Federal Money Market Fund.
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.
How much interest does Vanguard pay on cash? ›
Vanguard cash interest: how it's calculated
That makes this charge much smaller than it appears at first glance, as we'll see below. Tot those numbers up and you'll earn a minimum 3.0935% Vanguard cash interest on uninvested cash lying idle in a stocks and shares ISA, Junior ISA, SIPP, or general trading account.
How much is too much in high-yield savings account? ›
A high-yield savings account can be a great place to store your emergency savings. Most experts suggest that you should keep between three and six months' worth of expenses in your emergency account at all times.
Who has the highest paying high-yield savings account? ›
Compare the top high-yield savings accounts rates
- DCU Primary Savings Account: 0.15% to 6.17% APY.
- My Banking Direct High Yield Savings Account: 5.55% APY.
- Western Alliance Bank High-Yield Savings Premier: 5.36% APY.
- BrioDirect High-Yield Savings Account: 5.35% APY.
- Ivy Bank High-Yield Savings Account: up to 5.30% APY.
Although each financial situation is unique, it doesn't typically make sense for you to keep all of your money in a high-yield savings account. After all, most high-yield savings accounts limit withdrawals to only six per month, so a checking account is typically a better place to store your spending cash.
What type of account is Vanguard Cash Plus? ›
The Vanguard Cash Plus Account is a cash management account that features a bank sweep insured by the Federal Deposit Insurance Company (FDIC) and offers a competitive yield on your short-term savings. You can use the bank sweep as a low-risk place to keep cash for your immediate needs as well as for emergencies.
If there's a pending fee in any of your Vanguard accounts, this could prevent the withdrawal from being sent. Or if you change your nominated bank account after submitting a withdrawal. You can also choose to withdraw when you sell your holdings if you have a nominated and verified bank account.
How do I transfer money from my cash plus account? ›
How to make a payment
- Once you've logged in Online Banking, click 'Payments and Transfers'
- Select 'Make a Payment'
- If you have paid this person before, use the dropdown menu to select the payee (If it's a new payee, see our 'How to set up a payee' guide below)
- Enter the amount of the payment.
To transfer money into your Vanguard Cash Account log in to Vanguard Online, select your account, then choose 'Cash' from the menu. You'll be able to see your Vanguard Cash Account balance as well as having the option to deposit money into this account.
How long does it take for Vanguard cash to settle? ›
When you sell funds, you'll need to wait for the trade to settle before you can withdraw the cash. This normally happens 2 to 4 working days after submitting your instruction.
Is Vanguard money market better than savings account? ›
Money market funds generally have much higher yields than bank savings accounts. But savings accounts may have features like overdraft protection, ATM access, or other ways to immediately access your money.
Is Vanguard account secure? ›
The security of your information is extremely important to us, so our commitment to you is simple: We'll reimburse you the amount taken from your Vanguard account in an unauthorized online transaction on vanguard.com if you've followed the steps described in the Your responsibilities section below.
How safe is Vanguard brokerage account? ›
Brokerage accounts hold investments such as stocks, bonds, and mutual funds, which aren't insured by the FDIC. Vanguard accounts are protected by Securities Investor Protection Corporation (SIPC) insurance. This insurance covers up to $500,000 in securities and up to $250,000 in cash if the firm fails.
Is cash in my brokerage account safe? ›
Holding cash here is appropriate if you plan to spend the money within a few days or would like to quickly place a trade. Assets in your brokerage account are protected up to $500,000 per investor, including a maximum of $250,000 in cash by SIPC in the event a SIPC-member brokerage fails.
