No, Vanguard mutual funds and ETFs aren’t FDIC insured; only bank deposits at FDIC-insured banks can carry that protection.
If you’re asking this right after moving money to Vanguard, you’re in the right place. “FDIC insured” is a bank phrase. Vanguard mostly sells securities, not bank deposits.
Below you’ll see where FDIC can still show up inside a Vanguard account, what it does, and a quick way to confirm what you actually hold.
Are Any Vanguard Funds FDIC Insured?
No. A Vanguard fund (mutual fund or ETF) is an investment product whose value moves with its holdings. FDIC insurance is for deposits at banks, like checking, savings, and CDs issued by an FDIC-insured bank.
Vanguard may mention FDIC because some cash features sweep eligible cash into partner banks. That cash can be eligible for FDIC insurance at those banks. The fund itself still isn’t FDIC insured.
| What You Hold At Vanguard | FDIC Insured? | What That Usually Means Instead |
|---|---|---|
| Vanguard mutual fund (index or active) | No | Market value can rise or fall; not a bank deposit |
| Vanguard ETF | No | Trades like a stock; price moves with the market |
| Bond fund (including Treasury or muni funds) | No | Bond prices and rates move; not a deposit |
| Money market fund (often used as a settlement fund) | No | Seeks stability, but it’s still a security |
| Uninvested cash swept to Program Banks (bank sweep) | Yes, at the banks | FDIC insurance can apply up to limits per depositor, per bank, by ownership category |
| Vanguard cash product that uses a bank sweep (Cash Plus / Cash Deposit) | Yes, at the banks | Cash is placed at one or more partner banks; your other deposits there count too |
| Brokered CD bought through Vanguard Brokerage | Yes, at the issuing bank | FDIC rules apply to the CD’s issuer; deposits at that bank are added together |
| Stocks, bonds, and other traded securities | No | Custody and recordkeeping protections may apply; market losses aren’t insured |
What FDIC Insurance Applies To And What It Doesn’t
FDIC insurance is a backstop for deposits when an FDIC-insured bank fails. It’s not a guarantee against losing money because markets moved.
The standard FDIC limit is $250,000 per depositor, per insured bank, for each account ownership category. Spread across different banks, you can have more insured amount. Separate ownership categories can also create separate limits at the same bank.
For the official rule language and the ownership categories, read the FDIC deposit insurance rules.
How FDIC Limits Add Up With Program Banks
The phrase “per depositor, per bank, per ownership category” is the whole game. If your cash sweep uses multiple Program Banks, the insurance limit can repeat at each bank, as long as you stay within the rules at each one.
Here’s the catch: FDIC totals are aggregated at the bank level. If you already have a checking or savings account at one of the Program Banks under the same ownership category, those balances are added to your swept cash when the FDIC limit is measured.
A way to stay organized is to treat it like a ledger.
- List each Program Bank name shown in your sweep details.
- Add the swept amount placed at that bank.
- Add any other deposits you hold at that bank in the same ownership category.
- Check that the total stays at or under $250,000 for that category at that bank.
If the sweep spreads cash across several banks, the total FDIC-eligible amount can be higher than $250,000 in the account as a whole.
Vanguard Funds FDIC Insured Status With Cash Sweep Options
This is where the mix-up usually starts: one Vanguard dashboard can show both securities and cash features, and the labels can look similar at a glance.
Securities You Buy
Mutual funds, ETFs, and money market funds are securities. They aren’t deposits, so they don’t get FDIC insurance. Their value can move, even if that movement is small in a money market fund.
Cash Moved To Partner Banks
Some Vanguard cash offerings sweep eligible cash to “Program Banks.” In that setup, the cash balance is treated as a bank deposit at those banks, not as a security held at a brokerage. That’s the slice that can be eligible for FDIC insurance, subject to the normal FDIC limits and your other deposits at the same banks.
Vanguard describes this structure on its Cash Plus page, including how bank sweep deposits are handled. See the Vanguard Cash Plus Account bank sweep details for the current disclosures and terms.
Where SIPC Fits In When You Use Vanguard Brokerage
FDIC and SIPC both sound like “insurance,” but they protect different things.
FDIC is tied to bank deposits. SIPC is tied to brokerage firm failure and missing customer assets. SIPC isn’t a shield against a fund price dropping.
Why Money Market Funds Feel Like Cash But Aren’t FDIC Insured
Money market funds are built to hold short-term debt and aim to keep a steady $1 share price. That “cash-like” behavior is why people park money there.
Still, a money market fund is a security. If you want FDIC eligibility, you need a deposit at an FDIC-insured bank, like a bank sweep deposit or a bank account.
Common Mix-Ups That Lead To The Wrong Assumption
These are the spots where people get tripped up.
- “My settlement fund is cash, so it’s FDIC insured.” A settlement fund is often a money market fund. That’s a security.
- “I see FDIC on one screen, so my whole account is insured.” FDIC may apply to swept deposits, not to funds or ETFs.
- “Treasury funds must be FDIC insured because the U.S. backs Treasuries.” Treasuries have U.S. backing, but a Treasury fund is still a fund with market pricing.
- “A bank sweep means I’m insured for any amount.” FDIC insurance has limits per bank and ownership category, and your other deposits at the same banks count.
- “SIPC means my investments can’t lose value.” SIPC isn’t about market losses.
How To Verify What You Hold In Two Minutes
You don’t need special tools for this. Match the label on your statement to the right rule set.
- Open your holdings list. Funds and ETFs will be listed as securities, often with a fund name or ticker.
- Find your cash position details. Wording like “Bank Sweep,” “Program Bank,” or “deposit” points to FDIC-eligible cash at partner banks.
- Check whether cash is a fund or a sweep. A money market fund name points to a security. A sweep listing points to deposits at banks.
- List the banks if it’s a sweep. FDIC limits are per bank, and your other deposits at the same bank count too.
- Save a screenshot or PDF of the disclosure. It’s the fastest way to keep the terms straight when you revisit this later.
Choosing Between Sweep Cash, Money Market Funds, And CDs
Think of this as picking a lane. A bank sweep is about deposit rules. A money market fund is about a fund structure. A CD is about locking money for a term.
- Pick a bank sweep cash option when FDIC eligibility is your top priority.
- Pick a money market settlement fund when you want cash ready for trades inside a brokerage account.
- Pick a brokered CD when you want a set term and can live with liquidity limits.
Scenarios And What To Check Before You Park Money
| Your Goal | What Many People Use At Vanguard | What To Verify Before You Commit |
|---|---|---|
| Emergency cash you can tap any day | Cash Plus or another bank sweep cash option | Program Banks used, ownership category, and total deposits you already have at those banks |
| Down-payment cash with a set date | Bank sweep cash or brokered CDs with matching maturity | FDIC limits per bank and whether the CD issuer overlaps with your other banks |
| Uninvested cash between trades | Settlement fund (often a money market fund) | It’s a security, not a deposit; FDIC won’t apply |
| Cash inside a retirement account | Settlement fund or money market fund | FDIC applies only to bank deposits; a fund held in the account isn’t FDIC insured |
| Short-term parking with low price swings | Money market fund | It’s still a security; read the fund’s prospectus and disclosures |
| Fixed term, fixed issuer | Brokered CD | FDIC limits at the issuing bank and any early sale rules if you need cash sooner |
| Large cash balance above one bank limit | Multi-bank sweep program | How the balance is split across banks and whether you can change Program Bank selections |
| Long-term investing | Index funds and ETFs | Price moves are normal; FDIC doesn’t apply to this bucket |
A Clean Checklist For This Question
If you came here asking “are any vanguard funds fdic insured?”, use this list to walk away with a clear answer.
- Mark each holding as a security or a bank deposit.
- If it’s a fund or ETF, it isn’t FDIC insured.
- If it’s a bank sweep deposit, list the Program Banks and add up your deposits at each bank across accounts in the same ownership category.
- Keep the FDIC limit wording in mind: per depositor, per bank, per ownership category.
- Keep SIPC in the right box: it’s about missing assets in a brokerage failure, not market moves.
One Last Reality Check Before You Click “Buy”
Funds are investment products. FDIC insurance is a bank deposit feature. When both show up in one platform, the label on each line item is what counts.
And yes, the answer stays the same: are any vanguard funds fdic insured? No. The FDIC-eligible piece at Vanguard shows up only when your cash is placed as a deposit at FDIC-insured Program Banks.