The Vanguard Cash Plus Account pays 3.35% APY as of August 2026 (a 3.10% base rate plus a temporary 0.25 point boost through September 30, 2026), with FDIC coverage up to $1.25 million per individual through Vanguard's program banks. It suits investors holding large cash balances at Vanguard, but it has no checkwriting, no ATM access, and top online savings accounts currently pay more.
Key takeaways
- Current yield: 3.35% APY as of August 2026, per Vanguard. That includes a promotional 0.25 percentage point boost that expires September 30, 2026, after which the base rate (3.10% as of April 1, 2026) applies. The rate is variable and can change at any time.
- Outsized FDIC coverage. By sweeping deposits across multiple program banks, Cash Plus insures up to $1.25 million for individual accounts and $2.5 million for joint accounts, versus the standard $250,000 at a single bank.
- No fees, no minimums. $0 to open, $0 minimum balance, $0 account service fee with e-delivery.
- Banking features, with gaps. You get a routing and account number for direct deposit, bill pay, and mobile check deposit, but no checkwriting, no debit card, and no ATM access.
- You can often earn more elsewhere. Vanguard's own Federal Money Market Fund (VMFXX) has yielded more (7-day SEC yield of 3.56% as of June 5, 2026), and the top high-yield savings accounts paid up to 4.15% APY as of late August 2026.
What the Cash Plus Account actually is
Cash Plus is not a bank account. It is a Vanguard brokerage account built for cash: your balance is swept into a network of partner banks (the "program banks"), each of which carries its own FDIC insurance. Because coverage stacks across banks, Vanguard can offer up to $1.25 million of FDIC protection on individual, trust, and organizational accounts and up to $2.5 million on joint accounts. Vanguard publishes the current program bank list, which matters if you already hold deposits at one of those banks, since coverage at any single institution is still capped at $250,000 per depositor per ownership category.
That insurance ceiling is the account's real differentiator for high-net-worth savers. If you are parking proceeds from a business sale, a home closing, or a bond ladder unwind, a single bank leaves most of the balance uninsured. Cash Plus solves that without you opening five separate bank accounts or managing a brokered CD ladder.
The account also functions as a light checking substitute. Vanguard issues a routing number and account number, so you can point your paycheck at it, pay bills from it, link it to PayPal or Venmo, and deposit checks through the mobile app. Transfers to and from your other Vanguard accounts are free, and bank transfers settle by the next business day.
What it will not do: write checks, dispense cash at an ATM, or issue a debit card. It cannot fully replace a checking account for anyone who still touches paper checks or cash.
The yield, in context
As of August 2026, Cash Plus pays 3.35% APY. Two caveats. First, 0.25 points of that is a promotional boost Vanguard is running through September 30, 2026; the underlying base rate is 3.10% (as of April 1, 2026). Second, the rate floats with short-term interest rates, so it will drift down if the Federal Reserve keeps cutting. For where short-term rates sit and where they are heading, see our interest rates coverage.
For perspective, the FDIC put the national average savings account rate at 0.38% as of July 2026, so Cash Plus beats the typical bank by a wide margin. But it does not lead the market. NexBank (via Raisin) offered up to 4.15% APY as of August 24, 2026, and several online banks paid 4% or more. On a $500,000 balance, the gap between 3.35% and 4.15% is $4,000 a year.
There is also a higher-yield option inside the account itself. Cash Plus lets you buy five Vanguard money market funds ($3,000 minimum each), including the Vanguard Federal Money Market Fund (VMFXX), which carries a 0.11% expense ratio and reported a 7-day SEC yield of 3.56% as of June 5, 2026. VMFXX has historically out-yielded the Cash Plus bank sweep by roughly 20 to 40 basis points, though the promotional boost narrowed that gap in 2026. The tradeoff: VMFXX is a security protected by SIPC, not an FDIC-insured deposit. Money market funds are very low risk, but they are not government-guaranteed.
Cash Plus vs. VMFXX vs. a top high-yield savings account
| Vanguard Cash Plus | VMFXX money market | Top HYSA (e.g., NexBank via Raisin) | |
|---|---|---|---|
| Yield (Aug 2026) | 3.35% APY (3.10% base + 0.25 boost through 9/30/26) | 3.56% 7-day SEC yield (as of 6/5/26) | Up to 4.15% APY (as of 8/24/26) |
| Protection | FDIC, up to $1.25M individual / $2.5M joint | SIPC (securities coverage, not FDIC) | FDIC, $250K per bank |
| Minimum | $0 | $3,000 inside Cash Plus | Varies, often $0 |
| Access | Routing number, direct deposit, bill pay, mobile deposit; no checks, no ATM | Sell and settle, then transfer | ACH transfers; some offer ATM cards |
| Fees | $0 with e-delivery | 0.11% expense ratio | Typically $0 |
Who should use it
Cash Plus makes the most sense in three situations. First, if you hold cash well above $250,000 and want FDIC coverage without juggling banks. Second, if you already invest at Vanguard and want your emergency fund, settlement cash, and quarterly tax reserves in the same login, one free transfer away from your brokerage account. Third, if you value simplicity over squeezing out the last half point of yield.
Skip it if you want the absolute highest rate on smaller balances (a top HYSA wins), if you need checkwriting or ATM access (a real checking account wins), or if you are comfortable holding VMFXX and do not need FDIC insurance (the fund usually yields more once the promo boost expires). Note that Vanguard's separate settlement-fund sweep and its Cash Deposit product are different animals; Cash Plus is the standalone account with the banking features.
True to form, Vanguard charges nothing to open or maintain the account, consistent with the low-cost structure across its lineup (see our breakdown of Vanguard's fees). For how Cash Plus fits alongside Vanguard's brokerage, money market, and CD options, our Vanguard hub covers the full product family.
Bottom line
The Cash Plus Account is a well-built parking spot for large cash balances: genuinely fee-free, FDIC-insured to $1.25 million, and integrated with the rest of Vanguard. It is not the highest-yielding home for cash, and it is not a full checking replacement. Treat it as insurance-rich storage for serious money, pair it with VMFXX when you want extra yield, and check the current rate on Vanguard's site before you move, because the advertised 3.35% includes a boost that ends September 30, 2026.
Rates cited as of August 2026 from Vanguard, the FDIC, and published rate surveys. All rates are variable and change frequently; verify current figures before acting.
Frequently asked questions
How much FDIC insurance does the Vanguard Cash Plus Account provide?
The Cash Plus Account insures up to $1.25 million for individual accounts and $2.5 million for joint accounts by sweeping deposits across multiple program banks, versus the standard $250,000 at a single bank. Coverage at any single program bank is still capped at $250,000 per depositor, which matters if you already hold deposits at one of them.
Can you write checks or use an ATM with the Vanguard Cash Plus Account?
No, the Cash Plus Account has no checkwriting, no debit card, and no ATM access. You do get a routing and account number for direct deposit, bill pay, and mobile check deposit, and you can link it to PayPal or Venmo. It cannot fully replace a checking account for anyone who still touches paper checks or cash.
Does VMFXX yield more than the Vanguard Cash Plus Account?
VMFXX has historically out-yielded the Cash Plus bank sweep by roughly 20 to 40 basis points, and reported a 3.56% 7-day SEC yield as of June 5, 2026 versus Cash Plus at 3.35%. The tradeoff is protection: VMFXX is a security covered by SIPC, not an FDIC-insured deposit, and it requires a $3,000 minimum inside the account.
Why is the Vanguard Cash Plus rate 3.35% and will it drop?
The 3.35% APY includes a promotional 0.25 percentage point boost that expires September 30, 2026, after which the 3.10% base rate applies. The rate is also variable and floats with short-term interest rates, so it will drift down if the Federal Reserve keeps cutting. Check the current rate on Vanguard's site before moving money.
Who should use the Vanguard Cash Plus Account?
The Cash Plus Account makes the most sense if you hold cash well above $250,000 and want FDIC coverage without juggling banks, already invest at Vanguard and want cash one free transfer from your brokerage, or value simplicity over the last half point of yield. Skip it if you want the highest rate on smaller balances or need checkwriting.