Vanguard review: Everything you need to know

Vanguard has built its reputation on low-cost investing, making it a go-to choice for retirement savers and buy-and-hold investors.

With thousands of funds, commission-free stock and ETF trades, and a focus on keeping costs low, it’s designed for people who want to grow wealth steadily over time.

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Vanguard: general overview

Vanguard is one of the largest investment companies in the world, managing trillions of dollars for individual investors and institutions. It’s best known for creating the first index fund and building a reputation around low-cost investing.

The company offers a wide range of products, including mutual funds, ETFs, stocks, bonds, and options. Investors can also open retirement accounts such as IRAs or choose managed services like Vanguard’s robo-advisor or personal financial planning.

Rather than catering to active traders, Vanguard focuses on long-term investors who want to grow wealth steadily while keeping fees as low as possible. Its average expense ratios are among the lowest in the industry, which has made it a trusted choice for retirement savers and buy-and-hold investors.

Vanguard Cash Plus Account reviews

Vanguard offers the Cash Plus Account, which works as a cash management option for short-term savings. It’s not a checking or savings account in the traditional sense, but it gives you many of the same features. You can set up direct deposit, pay bills, use mobile check deposit, and even link it with apps like PayPal and Venmo.

The main draw is the rate. As of now, the account pays 3.65% APY, far above what most big banks offer. And because deposits are swept into partner banks, balances are FDIC insured up to $1.25 million for individuals and $2.5 million for joint accounts.¹

If you want to keep cash secure while still earning, the Cash Plus Account can be a practical way to hold money alongside your investments at Vanguard.

Vanguard money market funds reviews

If you have cash you want to keep safe but still earn, Vanguard’s money market funds are worth a look. These funds invest in short-term government-backed securities, which keep risk lower than stocks or bonds, while paying a yield that’s often far above what you’d get from a big bank savings account.

They’re flexible too. You can easily move money in and out, and use it for short-term goals like an emergency fund or saving for a down payment.

The catch is that they’re not FDIC insured like a savings account, though SIPC protection applies if held through a brokerage account.

Vanguard money market funds at a glance

Vanguard CD

Vanguard doesn’t issue its own CDs, but you can buy brokered CDs through its brokerage platform. These work like regular CDs you’d get from a bank: you deposit money for a fixed period of time, earn a set interest rate, and get your principal back at maturity. The difference is that you’re buying them via Vanguard from partner banks.

CDs can be useful if you want predictable returns with lower risk than investing in stocks or bonds. They’re FDIC insured up to $250,000 per depositor, per bank, which adds a layer of security. Yields depend on the issuing bank and term, which can range from a few months to 10+ years.

The minimum investment is $1,000, with additional purchases in $1,000 increments. There are no fees if you buy a new-issue CD, though you may face market risk if you sell early on the secondary market.³

Vanguard customer experience

Vanguard is designed for long-term investors. The website and mobile app let you open accounts, move money, and manage investments, but the platform is simpler than some competitors.

Active traders may find the tools basic, while retirement investors often appreciate the focus on low costs and automatic investing options.

Customer support is available by phone Monday through Friday, 8 a.m. to 8 p.m. Eastern, and there’s also an online help center.⁴ Investors generally rate Vanguard highly for reliability and value. The firm is also consistently recognized for customer trust in independent studies.

Vanguard overdraft fees

Vanguard is an investment firm, not a bank, so it doesn’t offer checking accounts with overdraft services. That means there are no overdraft fees to worry about.

If you’re using the Vanguard Cash Plus Account or settlement fund, transactions are limited to the available balance. Payments that exceed your balance are simply declined, so you won’t face surprise charges like you might at a traditional bank.

Vanguard comparison

Not sure if Vanguard is the right brokerage for you? Here’s how it stacks up against other popular investment platforms in the US.

Vanguard pros and cons

Vanguard works best for long-term investors who value low costs and straightforward investing options. Its focus on simplicity and fund variety marks it a strong choice for retirement savers, though active traders may find the platform limiting.

Pros

• Wide selection of low-cost mutual funds and ETFs
• $0 commissions for online stock and ETF trades
• FDIC-insured Cash Plus Account with a competitive yield
• Brokered CDs and money market funds for conservative savers
• Strong reputation for investor-first principles and trust

Cons

• Basic trading platform with fewer research tools than competitors
• Options trades cost $1 per contract unless you have $1M+ in assets⁹
• Some mutual funds have minimum investments of $1,000 to $3,000
• No fractional shares for stocks (only for Vanguard ETFs)
• Limited customer support channels compared to newer brokerages

Frequently asked questions about Vanguard

Thinking about opening an account with Vanguard? Here are answers to some of the most common questions to help you decide.

Is Vanguard a good bank?

Vanguard isn’t a bank in the traditional sense; it’s an investment broker. It’s best known for its low-cost index funds, ETFs, and retirement accounts, making it a strong choice for long-term investors.

If you’re looking for everyday banking services like checking accounts or overdraft protection, you’ll want to look elsewhere. But for building wealth over time, Vanguard has a solid reputation.

What is the rating for Vanguard?

Ratings vary depending on what’s being reviewed. NerdWallet gives Vanguard 4.4 out of 5 in its 2025 brokerage review, highlighting the low costs and fund selection.¹⁰

Many customer reviews note the ease of using Vanguard for passive investing, though some mention that the platform feels limited compared to brokers geared toward active traders.

Is Vanguard a safe bank?

Yes. Vanguard Brokerage is a member of the SIPC, which protects cash and securities in your account up to $500,000 (including $250,000 in cash).¹¹

Vanguard also offers FDIC insurance on eligible balances in its Cash Plus Account, up to $1.25 million for individuals or $2.5 million for joint accounts. On top of that, the firm is regulated by the SEC and FINRA, giving customers additional oversight and protection.

Vanguard is best for long-term investors who want low-cost funds and straightforward account options. It shines when it comes to retirement savings and buy-and-hold strategies, but it’s less suited to active traders who need advanced tools or real-time data.

If you want a simple way to grow your wealth with trusted funds and low fees, Vanguard is worth considering.

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Sources

1. Vanguard – Cash Plus Account
2. Vanguard – Money market funds table
3. Vanguard – Brokered certificates of deposit
4. Vanguard – Personal investors' phone hours
5. Bank Rate – Fidelity Investments vs. Vanguard table comparison
6. Stock Brokers – Fidelity vs. Charles Schwab comparison
7. NerdWallet – Robinhood at a glance
8. Stock Brokers – ETRADE review
9. Trading Critique – Vanguard fee structure
10. NerdWallet – Vanguard rating
11. Vanguard – SIPC protection

Sources checked 09/23/2025