The educational 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.
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.
The Vanguard Cash Plus Account stands out with its high interest rate and federal insurance coverage up to $1.25 million for individual accounts. While it functions as a cash management account, typically offered by brokerages rather than banks, it partners with banks to ensure customer deposits are insured. This unique approach provides a fresh perspective on cash management options for Vanguard customers seeking a competitive interest rate and enhanced deposit insurance.
In today’s fast-paced world, many individuals are looking for ways to make their money work harder for them. One popular option that has gained popularity in recent years is the Vanguard Cash Plus Account. This innovative account offers investors a way to earn a competitive yield on their cash, while also providing the security and peace of mind that comes with investing in a reputable financial institution like Vanguard.
What is the Vanguard Cash Plus Account?
The Vanguard Cash Plus Account is a money market mutual fund that offers investors a way to earn a higher yield on their cash compared to traditional savings accounts. This account is designed for investors who want to keep a portion of their portfolio in cash while still earning a competitive return.
One of the key features of the Vanguard Cash Plus Account is its low expense ratio, which helps investors maximize their returns. Additionally, the account offers daily liquidity, meaning investors can access their cash whenever they need it without facing penalties or restrictions.
Benefits of the Vanguard Cash Plus Account
There are several benefits of investing in the Vanguard Cash Plus Account, including:
1. Competitive Yield: The Vanguard Cash Plus Account offers investors a competitive yield that is typically higher than what is offered by traditional savings accounts. This can help investors maximize their returns on their cash holdings.
2. Low Expense Ratio: The Vanguard Cash Plus Account has a low expense ratio, which means more of the returns generated by the account are passed on to investors. This can help investors increase their overall investment returns over time.
3. Daily Liquidity: Investors in the Vanguard Cash Plus Account have access to their cash on a daily basis. This means they can easily withdraw funds from the account whenever they need them without facing penalties or restrictions.
4. Security: Vanguard is a well-known and reputable financial institution that has been in business for decades. This can provide investors with peace of mind knowing that their cash is being held by a trusted and reliable company.
5. Diversification: By investing in the Vanguard Cash Plus Account, investors can diversify their portfolio and reduce risk. This can help protect their overall investment portfolio from market fluctuations and other risks.
How to Open a Vanguard Cash Plus Account
Opening a Vanguard Cash Plus Account is a straightforward process that can be completed online or over the phone. To open an account, investors will need to provide personal information such as their name, address, and Social Security number.
Once the account is opened, investors can fund it by transferring money from their bank account or by rollover funds from an existing retirement account. Vanguard offers a range of investment options for investors to choose from, allowing them to customize their investment strategy based on their individual goals and risk tolerance.
Is the Vanguard Cash Plus Account Right for You?
The Vanguard Cash Plus Account is a great option for investors who want to earn a competitive yield on their cash holdings while also benefiting from the security and peace of mind that comes with investing in a reputable financial institution like Vanguard. However, it is important to consider your individual investment goals and risk tolerance before deciding if this account is right for you.
If you are looking for a way to earn a competitive return on your cash without taking on too much risk, the Vanguard Cash Plus Account may be a good fit for you. With its low expense ratio, daily liquidity, and reputation for security, this account offers investors a way to maximize their returns on their cash holdings while also diversifying their investment portfolio and reducing risk.
In conclusion, the Vanguard Cash Plus Account is a solid option for investors who want to earn a competitive return on their cash holdings while also benefiting from the security and peace of mind that comes with investing in a reputable financial institution like Vanguard. By carefully considering your investment goals and risk tolerance, you can determine if this account is the right choice for you. Consider opening a Vanguard Cash Plus Account today and start maximizing your returns on your cash holdings.
