Vanguard CD Rates and Terms for 2025
Written by
Rudri Patel
Edited by
Elizabeth Constantineau
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Looking for the latest Vanguard CD rates? Brokered CDs through Vanguard offer competitive returns, flexible terms and access to multiple banks — making them a smart option if you’re aiming to grow your savings in 2025. Read on to learn current rates and terms.
Current Vanguard CD Rates: September 2025
According to data collected from the FDIC, Vanguard CD rates are well above the national average. Here’s a look at current rates for 2025:
| CD Term | Annual Percentage Yield (APY) | Minimum Deposit |
|---|---|---|
| 1-3 months | $1,000 | |
| 4-6 months | $1,000 | |
| 10-12 months | $1,000 | |
| 2 years | $1,000 | |
| 3 years | $1,000 | |
| 4 years | $1,000 | |
| 5 years | $1,000 | |
| 10+ years | $1,000 |
Vanguard CDs: Pros and Cons
Every financial product has benefits and drawbacks. Before opening a new account, consider these pros and cons of Vanguard CDs.
Pros
- Low minimum investment: $1,000 minimum to open a Vanguard CD
- Wide selection of terms: Terms from one month to 10+ years
- Competitive rates: APYs higher than a standard bank
Cons
- Limited liquidity: Not ideal if you need cash immediately
- Not redeemable before maturity: Must sell on the secondary market to access funds early
- Must have a brokerage account: A brokerage account is required
How Much Can You Earn With a Vanguard CD?
Here’s a simple example showing estimated earnings with Vanguard CDs:
| Deposit Amount | Term Length | APY | Estimated Interest Earned* |
|---|---|---|---|
| $2,000 | 2 years | $163.20 | |
| $3,000 | 3 years | $360.01 | |
| $5,000 | 5 years | $1,083.26 |
How To Open a CD With Vanguard
To open a Vanguard CD, you will first need a brokerage account. Once you have that, you can follow these steps:
- Step 1. Log in to your Vanguard brokerage account.
- Step 2. Navigate to the CD section.
- Step 3. Compare rates and terms, then select the CD that meets your needs.
- Step 4. Confirm your details and make sure you have the funds in your brokerage account.
Vanguard CD Rates vs. Other Banks
How do Vanguard CDs stack up against other competitors? Here’s a side-by-side comparison.
| Bank | 1-Year CD Rate | 5-Year CD Rate | Minimum Deposit |
|---|---|---|---|
| Vanguard | (10-12 month term) | $1,000 | |
| Capital One* | $0 | ||
| Popular Direct | $10,000 | ||
| Ally Bank | $0Â | ||
| Discover | $0 |
Is a Vanguard CD Right for You?
Here’s who might benefit from a Vanguard CD — and who may want to consider other options.
Ideal For
- Individuals who want FDIC-insured safety and are comfortable using a brokerage account.
- Those with at least $1,000 to invest and are looking for fixed returns.
- Investors seeking higher yields than many traditional banks offer.
Not Great For
- Anyone who may need to withdraw funds early — since brokered CDs must be sold on the secondary market, possibly at a loss.
- People who prefer compound interest for maximizing growth.
- Investors looking for CD laddering convenience without managing multiple issuers.
- Investors who are unfamiliar or uncomfortable with brokerage platforms.
Tips for Getting the Best CD Rate
Want the best rate on your CD? Here are some tips that may help:Â
- Consider banking perks. If you have a relationship with the bank or have multiple accounts, you may get a better rate on your CD.Â
- Compare multiple terms. Make certain you review CDs at various banks and credit unions to find a good fit for your financial portfolio.Â
- Look for promotional or limited-time offers. Banks and credit unions often offer promotional rates or special offers on their CDs. Check online for those offers.Â
- Use a CD laddering strategy if liquidity matters. Use CD laddering as a strategy so that you can have cash on hand when you need it.Â
Vanguard CDs: FAQ
Here are the answers to some of the most frequently asked questions regarding Vanguard CD rates and features.- What is the minimum deposit for a Vanguard CD?
- Vanguard requires a $1,000 minimum deposit to open a CD.
- Do I need a Vanguard account to open a CD?
- Yes, you need a Vanguard brokerage account to open a CD.
- Can I open a CD online?
- Yes, you can open a Vanguard CD online.
- What happens if I withdraw funds before the term ends?
- There is no early withdrawal penalty since Vanguard CDs are not like traditional CDs. If you need access to your funds before maturity, you can sell the CD on the secondary market. However, the sale price may be less than your original investment.
- Are Vanguard CD rates competitive in 2025?
- Yes, rates are competitive and go up to 4.10% APY.
More About Vanguard
- Best Vanguard ETFs
- Best Vanguard Mutual Funds
- Vanguard ETFs vs. Vanguard Mutual Funds
- Vanguard vs. Fidelity
- Vanguard vs. Schwab
Caitlyn Moorhead, Karen Doyle and Marc Guberti contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Sept. 2, 2025.
*Capital One interest rates accurate as of Sept. 2, 2025. See website for all current rates.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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