Vanguard CD Rates are very competitive. How much interest you can earn depends on the term lengths and deposits. One thing for sure is that the longer the term, the more money you’ll make over time.
Of note, if you’re looking to earn more money on your investment, it might make sense to consider working with a financial advisor.
See the best Vanguard CD rates that are available for you below:
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Vanguard CD rates: an overview
Vanguard CD rates are the most competitive out there. They offer higher rates than most Bank CDs.
And you will certainly earn considerably more interest than a regular savings account or money market fund.
While Vanguard CDs offer a higher rate, it requires a much bigger deposit (a minimum of $10,000).
If you can afford that hefty deposit, then keep reading.
One thing you must know is that Vanguard offers brokered CDs. That is one of the reasons its rates are higher than Bank CDs.
What is a certificate of deposit (CD)?
CDs are certificates that banks or credit unions sell to you. Banks issue them to you for a specific dollar amount for a specific length of time.
The time period could be anywhere from 1, 6, 12 or 24 months to several years.
The bank pays you some interest. You get your full principal back plus interest you earn once the CD matures or “comes due.” If you want your money back before it matures, you can withdraw it.
But you will get hit with a penalty for early withdrawal. However, there are some banks, like CIT Bank, that offer CDs with no penalty.
Certificate of deposits just like bank savings accounts are very safe. That is because they are FDIC insured for up to $250,000.
So, if you’re looking for safety for your cash and competitive yield, CDs are some of the best short term investments to consider.
What is the difference between a bank CD and a brokerage CD?
Two types of certificates of deposits exist. One is Bank CD; the other is brokered CD.
Vanguard issues “brokered CDs”. Banks offer “bank CDs.” Brokered CDs are issued by banks. They are sold in bulk through brokerage firms such as Vanguard and Fidelity.
Just like Bank CDs, brokered CDs are FDIC insured up to $250,000.
Even though Vanguard CD rates are usually competitive, Vanguard brokered CDs don’t always provide higher yields than bank CDs.
But longer term brokered CDs such as the Vanguard 10-year CD offer high rates.
Are Vanguard CDs right for you?
Given that Vanguard CD rates are very competitive, they may be a good choice for you.
So, you may want to consider them if:
- You’re investing for a short-term goal, such as buying a house, in the next few years.
- You are looking for peace of mind knowing that your money is insured by the FDIC.
- You’re looking for an investment that provide higher yields than banks savings accounts;
- You want a low-risk place to keep your cash.
What are the Vanguard CD rates?
Vanguard offers brokered CDs ranging from 1 month to 10 years. As you can see, the longer the term of the CD, the higher the rate. For example, a Vanguard CD for a 7-year term offers a 1.50% yield.
Whereas a Vanguard CD’s rate for a 1-year term is only 1.20%. You can buy Vanguard CDs commission free and you can sell them commission free before they mature.
Vanguard 10-Year CD Rates
The applicable rate for a 10-Year Vanguard CD is currently 1.75%. And it requires a minimum deposit of $10,000.
This is the longest Vanguard CD term out there. And its interest rate exceeds most CD rates you’d get from banks.
Learn more about this product and apply on Vanguard Group’s secure website.
Vanguard 7-Year CD Rates
This 7-year Vanguard CD also requires a minimum deposit of $10,000. This CD’s yield is a little less than the Vanguard 10-year CD. Nonetheless, it’s still higher than most bank CDs. The yield is currently is 1.50%.
Vanguard 5-Year CD Rates
The applicable yield for a 5-Year Vanguard CD is still very competitive. It’s 1.50% and requires a $10,000 deposit.
Vanguard 3-Year CD Rates
The rate for a 3-Year Vanguard CD is 1.40% and a minimum deposit of $10,000 is required.
Vanguard 2-Year CD Rates
For a 2-year Vanguard CD, the yield is 1.30%. The minimum deposit is $10,000.
Vanguard 18-Month CD Rates
For a 18-Month Vanguard CD, the yield is 1.20%. The minimum deposit is $10,000.
Vanguard 1-Year CD Rates
The yield for a 1-Year Vanguard CD is 1.20% and a minimum deposit of $10,000 is required. Compare this with CIT Bank’s 1-Year CD of 1.25% APY.
Vanguard 9-Month CD Rates
The applicable yield for a 9-Month Vanguard CD is still very competitive. It’s 1.05% and requires a $10,000 deposit.
Vanguard 6-Month CD Rates
The yield for a 6-month Vanguard CD is currently 1.00%. Vanguard brokerage CD requires a $10,000 minimum deposit.
Vanguard 3-Month CD Rates
For a 3-Month Vanguard CD, the yield is 0.80%. The minimum deposit is $10,000.
Vanguard 1-Month CD Rates
The yield for a 1-Month Vanguard CD is 0.80% and a minimum deposit of $10,000 is required.
Best Vanguard Mutual Funds: Alternative to Vanguard CDs
If Vanguard CDs do not do it for you, or you’re looking to get more return on your money, then try to invest in the best Vanguard mutual funds out there. That way your money is still safe and you get more money.
Mutual funds are some of the best ways to invest your money. One thing to be aware is that mutual funds invest in stocks and bongs.
These securities tend to be volatile. Therefore, you might lose some or most of your investment if the market goes down. So, beginner investors wishing to invest in these Vanguard Funds should also consider learning how the stock market works.
Vanguard CDs might be a good choice for you if you want to avoid risky investments and you are saving your money for a short-term goal such as going on a vacation.
Indeed, Vanguard CD rates are better than bank savings accounts and money market funds. But the money is only available after the CD “matures.” On the other hand, if access to your money at anytime is a priority, check out the best Vanguard Mutual Funds.
Tips for Maximizing Your Savings
- Open a Chase checking account. You will get a $200 bonus when you open a new Chase Total Checking account and set up a direct deposit. And it’s easy to find a Chase ATM just about anywhere. Get started Now.
- If you have questions beyond Vanguard CD rates, you can talk to a financial advisor who can review your finances and help you reach your goals. Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.