Vanguard Cash Plus Account Review: Online Cash Management Account
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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, a product which provides the services and features of checking and/or savings accounts, but these accounts are typically offered by brokerages, not banks. Brokerages sweep customer deposits into accounts at partner banks behind the scenes to provide insurance coverage.
Best for: Vanguard customers who wish to earn a high interest rate and want access to a higher-than-average federal insurance limit on their savings.
» Want to check out other cash management accounts? See NerdWallet's list of the Best CMAs
Reviewed in: Aug. 2024. Period considered: Aug. 2024.
Where Vanguard shines | Where Vanguard falls short |
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Checking and savings features
4.0
NerdWallet ratingUpsides
High interest rate. With a rate of 3.90% APY, the Vanguard Cash Plus Account rivals the rates found on many high-yield savings accounts.
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.
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.
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.
Option to invest cash in safe investments. In addition to putting cash into third-party banks, Vanguard’s cash management account also lets customers invest in money market funds, which are mutual funds where cash is put into low-risk, short-term investments such as U.S. Treasurys.
» Compare your options: Check out CMAs versus brokerage accounts
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.
» Want to explore other checking options? Check out NerdWallet’s best checking accounts
Customer experience
4.0
NerdWallet ratingUpsides
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.
