Improving plan participants’ emergency savings
The SECURE 2.0 Act authorized pension-linked emergency savings accounts (PLESAs) within retirement plans, but those accounts come with deposit limits and other restrictions (highly compensated employees making $150,000 or more are ineligible). We researched multiple solutions to find one that helps our plan sponsors provide a well-rounded and competitive financial well-being offer, and landed on one that truly embodies our mission of helping all investors. Vanguard has chosen to offer our Cash Plus Account to participants, equipping them with an out-of-plan emergency savings strategy to empower the way they save.
Adding value to the participant experience with Cash Plus
We’re committed to participants’ success
We share your goal of helping all your participants achieve financial well-being and long-term success. Our principles have guided our proposal to move forward with an out-of-plan solution that allows all participants—regardless of compensation—to save for emergencies beyond the PLESA limit of $2,500. We researched and vetted several out-of-plan options and ultimately determined that our own Cash Plus Account can help drive participant outcomes by providing a mix of benefits that align with our mission.
Cash Plus will give participants not only a home for their emergency savings but also a space to save for upcoming expenses or short-term goals (like a wedding or a down payment on a house). Their cash will be there when they need it while earning a competitive APY on Cash Plus program balances.1
Not all plans are eligible for Cash Plus. If you want to know more or find out how to become eligible, please contact your Vanguard representative.
* Bankrate's 2026 Annual Emergency Savings Report.
Notes
1 Your account may be subject to restrictions intended to help prevent fraud. Transactions may be subject to daily limits and holding periods of generally four (4) to five (5) business days. For new accounts, cash and check deposits are generally subject to an initial hold of up to 20 days, although the hold may last up to 60 days in certain circumstances. During this time, you may invest your deposited funds; however, cash deposits may only be returned to the bank account from which they were received. After the initial hold period ends, your funds will be fully available for transfer or withdrawal.
2 There may be low fees for certain types of transactions, such as wire transfers and account closure and full transfer out fee. See the Vanguard Brokerage Services commission and fee schedules for details and exclusions.
3 Bank Sweep program balances are held at one or more Program Banks, earn a variable rate of interest, and are not securities covered by SIPC. They are not cash balances held by Vanguard Brokerage Services (VBS), a division of Vanguard Marketing Corporation (VMC); VMC is not a bank. Balances are eligible for FDIC insurance subject to applicable limits and certain conditions. FDIC insurance only covers failure of the Program Banks. See the Vanguard Bank Sweep Products Terms of Use and list of participating Program Banks for more information.
4 The Cash Plus Bank Sweep Program annual percentage yield (APY) will vary and may change at any time. For current Cash Plus APYs and for full Rate Tiering Program rules, terms, and conditions, visit the Cash Plus page.
The Vanguard Cash Plus Account is a brokerage account offered by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC. Under the Sweep Program, Eligible Balances swept to Program Banks are not securities: They are not covered by SIPC but are eligible for FDIC insurance, subject to applicable limits. Money market funds held in the account are not guaranteed or insured by the FDIC but are securities eligible for SIPC coverage. See the Vanguard Bank Sweep Products Terms of Use and Program Bank list for more information.
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