"Boost Your Financial Portfolio with Excellent Cash Investments: Explore CDs, Money Markets and More"

The assets that are swept to the Vanguard Federal Money Market Fund have a secure home in the VBS division of Vanguard Marketing Corporation. VBS is a member of the FINRA and SIPC, so the assets hold SIPC coverage for securities. It is important to keep in mind that the assets are not guaranteed by FDIC insurance. For more information on this, please refer to the Vanguard Brokerage Account Agreement (PDF).

If you're considering investing, compare the liquidity, ATM access, and overdraft protection offered by bank accounts versus the more unique features of savings accounts and Vanguard's Cash Plus sweep program. Additionally, before investing, always consider that there may be major differences between products. Be sure to ask questions so you understand the account features.

If you're enrolled in the Vanguard Cash Deposit program, please remember that swept Eligible Balances are not securities covered by SIPC but are eligible for FDIC insurance. These balances are the obligation of each Program Bank. More information can be found in the Bank Sweep Terms of Use (PDF). The assets held in the Vanguard Federal Money Market Fund are not covered by FDIC insurance, so it is important to monitor the total assets held in each Program Bank for FDIC coverage and limitations.

Brokered CDs, like all investments, may fluctuate and have potential for gain or loss. CDs can be sold prior to maturity, so be sure to monitor market conditions; selling prior to maturity may result in a substantial gain or loss. Remember that brokered CDs must meet a $1,000 minimum for purchase through Vanguard Brokerage. Yields are calculated as simple interest, not compounded, and CDs have limited liquidity in the secondary market. CDs with step rates are subject to secondary market risk and often include a call provision by the issuer which can result in reinvestment risk. The initial rate cannot be used to calculate the yield to maturity. If an issuer calls a CD, there is a risk to the investor that they will be forced to reinvest at a less favorable rate. Finally, Vanguard Brokerage does not recommend or endorse CDs in any way and makes no judgment as to the creditworthiness of the issuing institution.

It is important to note that any investment in a money market fund has the potential for loss. Although the fund seeks to maintain a share value of $1, it cannot guarantee this. Your investment in the fund is not insured or guaranteed by the FDIC or any government agency. There is no legal obligation for the fund's sponsor to provide financial support, so it is not expected.