Vanguard Treasury Money Market Fund (VUSXX): 7-Day Yield 3.82% and Review (October 2026)
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Yield, expense ratio and minimum re-checked against investor.vanguard.com on October 3, 2026 · Reviewed
Short answer
VUSXX's 7-day SEC yield was 3.82% as of October 2, 2026, per Vanguard, with a 0.07% expense ratio and a $3,000 minimum. That beat Schwab's SNSXX (3.54%) and Fidelity's SPAXX (3.49%) the same day, mostly because VUSXX costs far less to own. Its income is federally taxable, but because it holds Treasuries, much of it is usually exempt from state income tax.
Money market fund vs MYGA, after tax
What $100,000 earns in 5 years: money market fund vs MYGA, after tax
Rates used: Money market fund 3.76%, the highest 7-day yield we tracked (VUSXX, fund sites, September 23, 2026); yields change daily; 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).
| Money market fund, interest taxed every year | $115,550 |
|---|---|
| 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 money market fund, after tax | $10,586 |
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. 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.
VUSXX at a glance
| VUSXX fact | Value | As of |
|---|---|---|
| 7-day SEC yield | 3.82% | 10/02/2026 |
| NAV | $1.00 | 10/02/2026 |
| Expense ratio | 0.07% | 12/19/2025 |
| Minimum initial investment | $3,000 ($1 additional) | current |
| Fund assets | $113.4 billion | 09/24/2026 |
| Inception | 12/14/1992 | |
| Average annual return, 1 / 3 / 5 / 10 yr | 3.81% / 4.58% / 3.69% / 2.36% | 08/31/2026 |
VUSXX vs Schwab and Fidelity money funds (October 2, 2026)
| Fund | Type | 7-day yield | Expense | Minimum |
|---|---|---|---|---|
| VUSXX (Vanguard Treasury MMF) | Treasury | 3.82% | 0.07% | $3,000 |
| SNSXX (Schwab U.S. Treasury Money Fund) | Treasury | 3.54% | 0.34% | None |
| SPAXX (Fidelity Government MMF) | Government | 3.49% | 0.42% | $0 |
| FZDXX (Fidelity MMF Premium Class) | Prime | 3.68% | 0.30% net | $100,000 |
What drives the difference
- Expense ratio. 0.07% versus 0.34% to 0.42% at the big-brokerage defaults. On $100,000 that is $270 to $350 a year.
- State tax. Treasury interest is generally state-exempt; how much of VUSXX's income qualifies is published by Vanguard each year. High-state-tax residents gain the most.
- The yield floats. It resets daily and moves with Federal Reserve policy; the 1-year return to August 31, 2026 was 3.81%, lower than the 3-year average of 4.58%.
Rates expire like milk.
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Where to buy VUSXX
Buy it directly at Vanguard with $3,000. Other brokerages may offer it with a transaction fee or not at all; check your platform before moving cash.
VUSXX vs. a 5-year MYGA: $250,000 math
VUSXX is a cash tool: daily access and a yield that resets every day. For money that can sit five years, a multi-year guaranteed annuity (MYGA) fixes the rate for the term; A-rated-or-better insurers paid roughly 5.80% to 6.00% on 5-year MYGAs on September 24, 2026.
| $250,000 for 5 years | VUSXX at 3.82% (held constant) | 5-yr MYGA at 5.80% |
|---|---|---|
| Value after 5 years, after 24% federal tax | ~$288,500 | ~$311,900 (tax paid at the end) |
| Rate | Variable, resets daily | Fixed for the term |
| Access | Daily | Free-withdrawal amount yearly; surrender charge above it; IRS 10% penalty before 59½ |
| Protection | Not FDIC insured; seeks $1.00 NAV | Insurer claims-paying ability + state guaranty association (limits vary by state) |
The MYGA comes out about $23,400 ahead after federal tax, and that assumes the VUSXX yield never falls, which flatters VUSXX. The VUSXX column also ignores its possible state-tax exemption, which narrows the gap for high-tax-state residents. Fixed annuity benchmark: carriers rated A or better topped out around 5.80% to 6.00% on 5-year compound-interest MYGAs, per AnnuityRateWatch data, September 24, 2026. Rates vary by state, premium and carrier.
Current MYGA rates · Annuity vs CD · HYSA vs money market fund
Is VUSXX tax exempt? Federal vs state
Federal: no. VUSXX dividends are taxed as ordinary income on your federal return every year, at the same rate as bank interest. State: mostly, in most states. Interest from direct U.S. Treasury obligations is exempt from state and local income tax, and VUSXX holds Treasury bills and notes, so Vanguard reports a large share of its income as U.S. government interest each year. Some states only allow the exemption if a fund holds at least half of its assets in U.S. obligations; California is one. The state rules are in state tax on Treasury interest.
Example: $100,000 in VUSXX at 3.82% earns about $3,820 a year. If all of it qualified as Treasury interest, a California resident in the 9.3% bracket would skip about $355 of state tax that the same interest from a bank account would owe. That is why a Treasury fund can net more than a higher-yielding prime fund such as SWVXX in a high-tax state.
VUSXX vs VMFXX
Vanguard's two retail government-side funds were 0.03 points apart on October 2, 2026: VUSXX 3.82%, VMFXX 3.79%, both with a $3,000 minimum. VMFXX holds repurchase agreements and agency debt as well as Treasuries, so less of its income is state-exempt. Full detail is in the VMFXX review.
From my desk: how I compare this to locked rates
When I see VUSXX on a statement, the fee and state-tax homework is already done. The remaining question is time: Treasury-fund money that has been parked for years is earning a rate that resets daily and is taxed federally every year.
Example: $250,000 for five years at 3.82% (assumed constant) ends near $288,500 after 24% federal tax. A 5-year MYGA at 5.80% (low end of the A-rated range on September 24, 2026) ends near $311,900, with tax deferred until withdrawal and a surrender charge for early exit. The MYGA rate is backed by the claims-paying ability of the issuing insurer, not the U.S. Treasury. I do not sell or advise on money market funds; this is the insurance side of the comparison.
VUSXX: FAQ
What is the VUSXX 7-day yield?
3.82% as of October 2, 2026, per Vanguard. Vanguard describes it as the average annualized income dividend over the past 7 days.
What is the VUSXX expense ratio?
0.07%, per Vanguard's fund profile (expense ratio as of December 19, 2025). Earlier versions of this page said 0.09%; that is out of date.
What is the VUSXX minimum investment?
$3,000 for a general account, then $1 additional investments, per Vanguard.
Is VUSXX income exempt from state tax?
Interest from direct U.S. Treasury obligations is generally exempt from state and local income tax, and VUSXX invests in Treasuries, so part of its income may be state-exempt. Vanguard reports the percentage each year; some states require a minimum Treasury share before any exemption applies. Check it before you file.
VUSXX vs SPAXX vs SNSXX: which pays more?
On October 2, 2026: VUSXX 3.82%, SNSXX 3.54%, SPAXX 3.49%. The gap is mostly expense ratio: 0.07% at Vanguard versus 0.34% (SNSXX) and 0.42% (SPAXX).
Is VUSXX FDIC insured?
No. It is a money market fund, not a bank deposit. It seeks a stable $1.00 NAV but can lose value.
More: SNSXX review · SPAXX review · best money market funds 2026
My take
VUSXX is one of the cheapest ways to hold Treasury cash: 3.82% 7-day yield, 0.07% expenses, $3,000 minimum. It is still a variable-rate cash tool; for money with a five-year horizon, a fixed annuity locks a higher rate.
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398). He is not affiliated with Vanguard, does not sell money market funds or other securities, and gives no advice on them. Fund data is copied from the fund company's website as of the dates shown. Money market funds are not FDIC insured and can lose value. Past performance does not predict future results. MYGA figures are illustrations, not quotes.
A multi-year guaranteed annuity (MYGA) is the insurance version of a CD: one fixed rate for a set term. As of September 24, 2026, A-rated-or-better insurers were paying about 5.80% to 6.00% on 5-year MYGAs. The best nationally available 5-year CDs paid about 4.35% to 4.50% APY, and big-institution 5-year CDs less (Capital One 360 60-month 3.60%, Navy Federal 5-year 3.85 to 3.90%). A MYGA also defers the tax, where a CD or money market fund is taxed every year on interest you have not spent.
The trade is liquidity: breaking a MYGA early costs a surrender charge, not a few months of interest, and it is backed by the insurer and your state guaranty association rather than the FDIC. See the side-by-side · Current MYGA rates
Sources, all as of September 24, 2026: AnnuityRateWatch carrier rate data (MYGAs; rates vary by state, premium and carrier); DepositAccounts 5-year CD table; capitalone.com; navyfederal.org. Rates change often; confirm before you buy.
Parking cash in VUSXX for years? Compare a locked rate
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VUSXX yielded a variable 3.82% on October 2, 2026. A-rated 5-year MYGAs were paying about 5.80% to 6.00% on September 24, 2026, fixed and tax-deferred.
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Disclosure
This article is general educational information, not personalized financial, tax, or legal advice. All rates, IRS limits, Social Security PIA factors, IRMAA brackets, FDIC/NCUA coverage, and state guaranty fund coverage figures are current as of the publication date and subject to change. IRMAA brackets and Roth/Traditional IRA limits cited reflect IRS guidance for 2026 and may be updated by the IRS or SSA; confirm current figures at irs.gov and ssa.gov before acting. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; he does not sell bank CDs, money market funds, or Treasury securities and is not affiliated with any bank, brokerage, or government agency discussed. No compensation has been received from any third party in connection with this article. Bank CDs are FDIC-insured deposit products; credit union share certificates are NCUA-insured; money market funds are SEC-regulated investment products with no FDIC coverage; Treasuries are direct obligations of the U.S. government; MYGAs are insurance contracts backed by carrier balance sheets and state guaranty associations. These are different product categories with different protections, tax treatments, and trade-offs. Always confirm current rates and tax law with the issuer or a CPA before acting.