Vanguard CD Rates: March 2024

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March 22, 2024
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Vanguard CDs have competitive rates and terms as long as 10 years

Reviewed by Michael J BoyleFact checked by Michael Rosenston

Vanguard CD Rates

Vanguard is a large asset management firm that offers brokered certificates of deposit (CDs) to its customers. Brokered CDs are bought through an intermediary brokerage firm, like Vanguard. Banks sell them to brokerages, which in turn make them available to customers at competitive rates at a variety of terms.

Vanguard offers relatively high annual percentage yields (APYs) on its brokered CDs, which come with terms ranging anywhere from just one month all the way up to 10 years.

Important

The APYs listed below are up to date as of the date of publication of this article. We review CD rates every two weeks and update the information below accordingly.

CD Term	APY	Minimum Deposit
1–3 months	5.40%	$1,000
4–6 months	5.35%	$1,000
7–9 months	5.35%	$1,000
10–12 months	5.45%	$1,000
13–18 months	5.35%	$1,000
2 years	5.25%	$1,000
3 years	5.10%	$1,000
4 years	4.75%	$1,000
5 years	5.15%	$1,000
7 years	5.00%	$1,000
10+ years	4.85%	$1,000

See the best CD rates today before choosing the CD that is best for you.

Vanguard CDs: Key Features

APY Range	4.75%–5.45%
Minimum Deposit	$1,000 (additional purchases must be in increments of $1,000)
Term Range	1 month–10 years
Early Withdrawal Penalty	None
New Issues	$0
Secondary Trades	$1 transaction fee per $1,000 CD ($250 max); $25 fee for broker-assisted trades over the phone

Vanguard’s CDs pay out simple interest, rather than compound interest, to your linked Vanguard money market account. Simple interest is calculated based on the principal amount only; it doesn’t include the interest you earn, as compound interest does.

There’s no penalty for withdrawing your money early, but you might not make the full amount you were expecting if you close your CD prior to maturity.

Vanguard’s brokered CDs don’t renew automatically when they reach maturity. Instead, your earnings will be transferred to your linked money market account and your CD will close.

You have the option of opening a CD directly from a bank or purchasing one from a seller, which is called a secondary trade. Newly issued CDs don’t come with a fee, while secondary trades come with a $1 transaction fee per $1,000 CD, up to a maximum of $250.

Vanguard’s brokered CDs may be a good fit for customers who have a short-term goal and a large amount to invest. Since a brokerage account can hold CDs from multiple banks, you can protect your deposits beyond the usual $250,000-per-customer FDIC limit.

About Vanguard

Vanguard is an online brokerage firm that offers a variety of investment products, including mutual funds, money market accounts, stocks, and bonds. Founded in 1975, Vanguard provides various investments, retirement tools, and personalized financial advice.

Vanguard customers can open a brokered CD through their online account or over the phone with a Vanguard representative. The firm’s CD rates are quite competitive compared to other banks, although the lack of compound interest could be a turn-off for many.

Important

Vanguard CDs earn simple interest, rather than compound interest, so your earnings may not be as high as they would be on a compound interest-earning CD. It’s worth comparing your options to the best CD rates available today to see which account would give you the best return on investment.

Compare CD Account Rates

What Are the Benefits of Opening a CD Account at Vanguard?

Vanguard offers brokered CDs with competitive APYs and a wide range of flexible terms. It also doesn’t charge penalties for early redemption, though you’ll have to pay a fee for secondary trades, and for buying a CD from a seller. Newly issued CDs don’t have a fee.

Another benefit of opening a CD with Vanguard is the ability to increase your FDIC insurance beyond $250,000. If you open multiple CDs with different banks, you’ll get $250,000 in FDIC insurance from each bank.

Does Vanguard Have an Early Withdrawal Penalty for CDs?

Vanguard doesn’t charge an early withdrawal penalty for CDs, but it doesn’t guarantee the original face amount of the purchase if you sell your CD prior to maturity.

Is Vanguard FDIC-Insured?

Vanguard’s CDs are brokered through other banks, allowing you to get more than the typical $250,000 in FDIC coverage you get at a single bank. With Vanguard, you’ll get up to $250,000 in coverage from each bank that sells you a brokered CD.

Is There a Maximum Deposit for Vanguard CD Accounts?

Vanguard does not indicate a maximum deposit for its CD accounts; each account requires a minimum deposit of $1,000, and you must make additional purchases in increments of $1,000. Learn more about opening a CD account.