This Checking Account Helps You Grow Your Money Like Millionaires

For most people, parking cash in a standard checking account in one of the major national banks typically means accepting low, or even zero, interest. Fortunately, some financial institutions are starting to rethink this model and are offering lucrative perks to make the switch. Vanguard, in particular, offers a high-interest product in its Cash Plus Account. While the company is known for its low-cost investment options, this account follows a similar philosophy, with no monthly fees, minimums, and a notably high yield of 3.65% APY, at the time of writing, which is far above what traditional banks typically offer.

The Vanguard Cash Plus Account is designed to function like a traditional checking account while offering a yield more in line with a money market fund. It supports everyday features while offering FDIC insurance of up to $1.25 million for individual accounts and $2.5 million for joint accounts. For savers looking to keep their money accessible while earning more than at traditional banks, the account can be a compelling new option.

Although on the surface, the Cash Plus Account looks like a standard checking account, behind the scenes it acts a bit differently. The account provides the options to invest deposits into money market mutual funds, otherwise it is swept into partner banks which allows consumers to earn that higher APY. Additionally, the account does not provide a debit card, ATM access, or check writing, and is an online bank, which means no cash deposits or physical locations. That said, it is still a good option for savers who want to store their emergency funds without downsides of high-yield checking account, like to pay bills or make limited transfers.

The Cash Plus Account is also ideal for people who keep large balances and want to grow their money without the volatility of the stock market. For example, someone who keeps a $30,000 emergency fund can earn $1,095 in interest a year with the lucrative 3.65% APY, compared to just $21 with the average checking account APY of 0.07%. For tech-savvy individuals who prioritize savings over convenience, it can be a strategic way to make idle cash work a little harder.