Vanguard CDs Review (2026): Brokered CD Rates, Fees and How to Buy
Short answer
Yes, Vanguard offers CDs, but only brokered CDs issued by other banks and bought in a Vanguard brokerage account: $1,000 minimum in $1,000 increments, no commission on new issues, FDIC coverage up to $250,000 per issuing bank, and simple interest paid to your settlement fund (investor.vanguard.com, October 3, 2026). There is no early-withdrawal penalty, but selling before maturity means taking the market price.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
Vanguard's CD Desk: Structurally Smaller
Vanguard offers brokered CDs through its brokerage platform, but its CD inventory is materially thinner than what Fidelity or Schwab show on any given day. The reason is structural: Vanguard's brokerage business is smaller than Fidelity's or Schwab's, and Vanguard prioritizes its own low-cost index funds and ETFs over fixed-income product distribution. As a result, the bond and CD desks have less syndicate participation, fewer new-issue windows, and less day-to-day new inventory.
For investors with everything else at Vanguard who want to buy a few CDs to round out a fixed-income allocation, the platform works. For investors building a serious laddered CD portfolio with diverse issuing banks, Fidelity or Schwab offer wider selection on most days.
Rates expire like milk.
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Vanguard CD rates: October 2026 benchmarks
Vanguard does not set CD rates; issuing banks do, and the list changes every business day. Judge any Vanguard CD quote against these dated benchmarks:
| Benchmark | Yield | As of |
|---|---|---|
| 1-year Treasury (par yield) | 4.46% | October 2, 2026 |
| 2-year Treasury | 4.83% | October 2, 2026 |
| 5-year Treasury | 5.06% | October 2, 2026 |
| 10-year Treasury | 5.28% | October 2, 2026 |
| Marcus 12-month bank CD (APY) | 4.40% | October 3, 2026 |
| Synchrony 60-month bank CD (APY) | 4.50% | October 3, 2026 |
| A-rated 5-year MYGAs | about 5.50% to 6.05% | October 14, 2026 |
Sources: U.S. Treasury daily par yield curve (October 2, 2026); marcus.com and synchrony.com rate pages (October 3, 2026); public carrier rate sheets (October 14, 2026). Vanguard’s own brokered CD yield table (investor.vanguard.com/investment-products/cds) showed no figures when we checked on October 3, 2026; it fills in on business days. New-issue brokered CD rates are set by the issuing banks and change daily.
Rate snapshot (June 2026, not current)
Indicative new-issue brokered CD yields on Vanguard in mid-2026 (verify at investor.vanguard.com/investment-products/cds):
| Term | Indicative Yield Range | Vs. Fidelity |
|---|---|---|
| 3 months | 4.45-4.80% | 5-10bps lower |
| 6 months | 4.50-4.90% | Comparable |
| 12 months | 4.45-4.85% | 5-10bps lower |
| 2 years | 4.35-4.75% | Comparable |
| 5 years | 4.35-4.75% | Comparable |
Yields are broadly competitive. The gap to Fidelity/Schwab is typically 5-15 basis points and reflects Vanguard's thinner syndicate participation rather than any structural disadvantage. On any given day, Vanguard might have the best rate on one issuer and the worst on another.
Fees and Costs
- New-issue brokered CDs: no commission. Vanguard notes it may receive a concession from the issuing bank.
- Secondary-market purchases: a commission applies; see Vanguard’s commission and fee schedule for the current amount.
- Selling a CD you own: commission-free.
- Phone orders: an extra $25 broker-assisted fee on secondary trades placed by phone.
Source: investor.vanguard.com/investment-products/cds, checked October 3, 2026.
How to buy a CD at Vanguard
Open or log in to a Vanguard brokerage account (taxable or IRA), make sure the settlement fund holds the cash, then pick a new-issue or secondary CD by term and issuing bank. Interest starts on the settlement date. Before you buy, check three things: whether the CD is callable, how often it pays interest, and how much you already hold at that bank, because FDIC coverage is per issuing bank and Vanguard leaves the tracking to you. At maturity, principal and interest go to your settlement fund; nothing rolls over.
Can you lose money in a Vanguard CD?
Not if you hold to maturity and stay under the FDIC limit at each bank. You can lose money if you sell early: Vanguard says a brokered CD sold before maturity may have a substantial gain or loss, and the face amount is not guaranteed if sold. A callable CD can also be ended by the bank early, leaving you to reinvest at lower rates. See brokered CD vs bank CD for the trade-off.
Secondary Market: Adequate, Not Best-in-Class
Vanguard's secondary market for CDs exists and works, but bid-ask spreads on smaller face values are often wider than on Fidelity or Schwab. For a $5,000 face value secondary CD trade, a 0.10-0.15 point spread is common at Vanguard vs 0.05-0.10 points at the larger platforms. For institutional-size trades ($100K+), the gap narrows.
For a buy-and-hold-to-maturity investor, the secondary market doesn't matter. For an active trader, it does. Plan accordingly.
Inventory Limitations: What You'll Notice
The single biggest functional difference: on Vanguard, on many days you'll see 40-60 CDs available across all maturities; on Fidelity, you'll see 150-300. The implications:
- If you want a specific maturity (say, 14-month or 22-month), Vanguard may not have it on the day you're shopping; Fidelity probably will.
- If you want to diversify across 5+ issuing banks at once for FDIC stacking, Vanguard's inventory may not give you 5 attractive non-callable options at the term you want.
- If you want long-dated callable CDs (10-15 years) for yield reach, Vanguard's selection is much thinner.
For typical 6-month-to-5-year non-callable laddering, Vanguard is fine. For specialty needs, look elsewhere.
Vanguard vs Fidelity vs Schwab, The Honest Comparison
| Feature | Vanguard | Fidelity | Schwab |
|---|---|---|---|
| Inventory depth | Thin | Deep | Deep |
| New-issue commission | $0 | $0 | $0 |
| Secondary purchase commission | Charged (see Vanguard fee schedule) | See Fidelity schedule | See Schwab schedule |
| Phone-order surcharge | $25 on secondary trades | Varies | Varies |
| Yield competitiveness | 5-15bps below FID/SCH on average | Best on average | Best on average |
| Best for | Existing Vanguard customers, simple ladders | Heavy CD shoppers, large ladders | Schwab customers, large ladders |
From my desk: Hans Goldstein, licensed insurance producer (NPN 20602398)
When I look at a Vanguard statement, the CDs are usually fine. What I check is the cash around them: brokered CDs pay simple interest into the settlement fund, so on a ladder the interest piles up there. That is not a problem at Vanguard, whose settlement fund is a money market fund, but it is money that is not in the ladder.
I also check for call dates. A callable CD with a high coupon looks great until the bank calls it right after rates fall.
Example ($100,000, 5 years, IRA so no annual tax): a 5-year CD at 4.50% grows to about $124,600 if each interest payment is reinvested at the same rate; a 5-year MYGA at 5.50% grows to about $130,700, about $6,100 more, with a surrender schedule instead of market-price risk. Treasuries at 5.06% for 5 years (October 2, 2026) sit in between and are state-tax-free in a taxable account; see TreasuryDirect and the Vanguard IRA CD page.
Where MYGAs Fit
For Vanguard customers who want fixed-rate guarantees beyond what the CD desk can deliver, A-rated carrier MYGAs paid about 5.50% to 6.05% on 5-year terms on October 14, 2026 (public carrier rate sheets), versus 5.06% on the 5-year Treasury (October 2, 2026) and 4.50% on the best 5-year bank CD we verified (October 3, 2026). MYGAs aren't FDIC-insured; the rate is guaranteed by the issuing insurer and backed by its claims-paying ability, plus state guaranty associations, but for the bucket of money already destined for a multi-year lock, the yield premium is structural. Many Vanguard-loyal savers split: their tactical cash and short-duration CDs stay at Vanguard, their longer-term fixed income goes to MYGAs through an independent producer.
Frequently Asked Questions
Related Reading
- Fidelity brokered CD review
- Schwab brokered CD review
- Callable CD traps
- CD secondary market
- FDIC insurance explained
- Vanguard IRA CDs
Get a second opinion on your CD or large-deposit strategy
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If you're stacking FDIC categories, choosing a brokered CD desk, or weighing MYGAs against CDs for your fixed-income bucket, a 15-minute independent review confirms (or improves) your plan.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This article reflects publicly available information and approximate rates as of the date stated above. CD rates, brokered CD inventories, FDIC and NCUA rules, and carrier MYGA rates change frequently, often daily. Always verify current values against the issuing institution's official disclosure documents before committing funds. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers across the annuity market; this article is not an endorsement of any specific bank, brokerage, credit union, or carrier. No compensation has been received from any reviewed institution in connection with the publication of this article. FDIC and NCUA insurance limits, ownership category rules, and the operations of CDARS, ICS, and other IntraFi programs are governed by federal regulation and the program documents; always confirm coverage with the institution and refer to FDIC.gov, NCUA.gov, or IntraFi.com for the official rules. MYGA carrier financial strength ratings, state guaranty fund limits, and tax treatment are subject to change. Always read the actual contract and consult a licensed advisor before purchasing any annuity, CD, or insurance product.