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- Vanguard’s Cash Plus Account offers a competitive 4.7% annual yield on cash deposits, significantly higher than many traditional and online banks.
- This account also provides an impressive $1.25 million in FDIC coverage for individual accounts, ensuring safety and security for large deposits.
- “Don’t give your brokerage a low-cost loan,” suggests the financial wisdom, highlighting the importance of choosing high-yield accounts for idle cash.
Explore the benefits and details of Vanguard’s high-yield savings account and how it compares to traditional banking options.
Why Vanguard Cash Plus Savings Account Is Worth It
The Vanguard Cash Plus Account not only offers a high yield but also comes with no account fees and no minimum balance requirement, making it accessible and cost-effective for all savers.
Comparing Traditional and Online Bank Offerings
Traditional banks often offer lower interest rates on savings accounts, with figures like 0.01% at E-Trade and 0.48% at Charles Schwab, which pale in comparison to Vanguard’s 4.7%. Online banks tend to offer higher rates, but still, few match Vanguard’s offer.
Higher Interest Rates Make A Huge Difference
Investing $100,000 in Vanguard’s Cash Plus Account could yield significantly more over the years compared to traditional savings accounts, demonstrating the profound impact of higher interest rates on savings growth.
Conclusion
The Vanguard Cash Plus Account stands out as a superior option for savers seeking higher yields without sacrificing security. With its competitive rates and robust FDIC insurance, it offers a compelling alternative to both traditional and online banks.
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