Vanguard CD Rates and Terms for 2026
Written by
Rudri Bhatt Patel, CFHC™
Edited by
Joe Evans
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If you want CD-level safety but don’t want to be locked into just one bank’s rates, Vanguard brokered CDs give you a marketplace of options in a single brokerage account. You still get FDIC protection through the issuing banks, but you can shop for yields from many institutions at once.
As of early December 2025, heading into 2026, a sample search of Vanguard brokered CDs shows APYs ranging from 3.8% to 4.15%, with terms from 1 month to 10 years and a $1,000 minimum deposit. That’s significantly higher than the national average 12-month CD rate of 1.63% APY in December 2025, based on FDIC data.
Below is a look at Vanguard CD rates for 2026, how brokered CDs work and whether they belong in your savings strategy.
Current Vanguard CD Rates for 2026
Vanguard doesn’t issue CDs itself. Instead, it offers brokered CDs issued by multiple banks and sold through its brokerage platform.
Vanguard Brokered CD Rate Snapshot
| Term bucket | Minimum deposit | Sample APY (new issues) |
|---|---|---|
| 1-3 months | $1,000 | |
| 4-6 months | $1,000 | 3.85% APY |
| 7-9 months | $1,000 | 3.80% APY |
| 10-12 months | $1,000 | 3.80% APY |
| 13-18 months | $1,000 | 3.85% APY |
| 2 years | $1,000 | 3.90% APY |
| 3 years | $1,000 | 3.80% APY |
| 4 years | $1,000 | 3.85% APY |
| 5 years | $1,000 | 3.85% APY |
| 7 years | $1,000 | 3.85% APY |
| 10 years | $1,000 | 4.15% APY |
*Actual APYs can differ by bank and change daily.
Key takeaways you can highlight for readers:
- Rate range: roughly 3.8% to 4.15% APY going into 2026
- Top yield: 4.15% APY on a 10-year CD in the sample search
- Bread-and-butter term: 12-month sample APY at 3.8%, still more than double the national average for 1-year CDs
How Vanguard Brokered CDs Work
Vanguard offers brokered CDs, not bank CDs. That distinction matters.
According to Vanguard, brokered CDs are issued by banks and thrifts, then bought in bulk by the brokerage and resold to investors. You still get:
- FDIC insurance up to $250,000 per depositor, per bank, per ownership category
- Fixed interest rates for a set term
- A known maturity date
…but there are some differences versus a standard bank CD.
Brokered CDs vs Bank CDs
| Feature | Vanguard brokered CDs | Traditional bank CDs |
|---|---|---|
| Where you buy | Through Vanguard Brokerage from many banks | Directly from a single bank or credit union |
| Interest compounding | Simple interest paid out to a linked Vanguard money market fund, not compounded inside the CD | Often compounded in the CD account itself |
| Early exit | No early-withdrawal “penalty” — you sell the CD on the secondary market, possibly at a gain or loss | Redeem early and pay a set penalty, usually losing a few months of interest |
| Auto-renewal | Does not auto-renew – principal sweeps to your Vanguard money market at maturity | Usually rolls into a new CD if you don’t opt out |
| FDIC coverage | FDIC insured at each issuing bank, typically up to $250,000 per bank | FDIC/NCUA insured at that bank or credit union |
Because brokered CDs can be traded, their market value fluctuates with interest rates. If you sell before maturity in a rising-rate environment, you might get less than what you originally invested.
Vanguard CD Features and Terms
Here’s a skimmable snapshot you can drop into the article.
| Feature | Details |
|---|---|
| Product type | Brokered CDs from multiple FDIC-insured banks |
| Term range | About 1 month to 10 years |
| APY range (sample) | 3.8% to 4.15% APY based on a December 2, 2025, rate snapshot |
| Minimum investment | $1,000 per CD, in $1,000 increments |
| Interest | Calculated as simple interest and paid to a linked Vanguard money market account, where it then compounds |
| Insurance | FDIC coverage generally up to $250,000 per depositor, per bank, when held to maturity |
| Liquidity | Can be sold before maturity on the secondary market, but prices may be higher or lower than face value and liquidity can be limited |
| Auto-renewal | CDs do not auto-renew; principal returns to your Vanguard money market at maturity |
| Fees | No commission to buy new-issue CDs; separate rules for secondary-market trades |
Pros and Cons of Vanguard CDs
| Pros | Cons |
|---|---|
| Wide rate range up to 4.15% APY on sample Vanguard brokered CDs, higher than many big-bank CDs | Interest is simple, not compounded inside the CD, which can slightly reduce growth vs compounding CDs |
| Terms from 1 month to 10 years give you lots of flexibility for short- and long-term goals | $1,000 minimum per CD may feel high for brand-new savers |
| Access to CDs from many banks helps you spread FDIC coverage across institutions | If you sell before maturity, you could lose money due to rate changes, since prices move like bonds |
| No early-withdrawal penalty; instead you can sell on the secondary market if you need out early | CDs don’t auto-renew, so you must reinvest manually when they mature |
| Works seamlessly for investors already using Vanguard for funds or ETFs | Requires a Vanguard brokerage account, not a simple bank login |
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 | $156.96 | |
| $3,000 | 3 years | $364.87 | |
| $5,000 | 5 years | $1,083.26 |
How To Open a Vanguard CD
Because these are brokered CDs, you’ll work through a Vanguard brokerage account, not a bank branch.
- Open or log in to your Vanguard brokerage account
- If you don’t already invest with Vanguard, start by opening a brokerage account online.
- Go to the CDs section
- From the “Bonds & CDs” or “Cash investments” area, select brokered CDs to see current offerings.
- Filter by term and yield
- Choose the maturity window that fits your goal (for example, 1-3 months, 10-12 months or 5 years)
- Sort by yield to maturity and review which bank is issuing the CD
- Review the details
- Check the APY, maturity date, call features and FDIC-insured bank behind the CD
- Confirm the minimum investment of $1,000, in $1,000 increments
- Place your order
- Enter your order in dollar increments (for example, $10,000 = 10 units) and submit the trade
- Track maturity dates
- Since Vanguard brokered CDs don’t auto-renew, set calendar reminders so you can reinvest or move the cash once the CD matures and pays into your linked money market fund
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 | $0 | ||
| Discover | $0 |
Is a Vanguard CD Right for You?
A Vanguard CD could be a smart choice if you:
- Already invested at Vanguard and want to keep cash, CDs and funds in one place
- Want FDIC-insured, fixed-rate returns without jumping from bank to bank
- Have at least $1,000 per CD and can hold to maturity
- Like the idea of spreading deposits across multiple banks while managing everything in one dashboard
You might want to look at other options if you:
- Are chasing the absolute highest APY available in the country on every term
- Prefer a simple bank CD that compounds interest in the account
- Need frequent access to your money and would be better off with a high-yield savings or money market fund
- Don’t want to think about secondary-market pricing or using a brokerage platform
Tips for Getting the Best CD Rate
Want the best rate on your CD? Here are some tips that may help:
- Consider banking perks: If you have a relationship with the bank or have multiple accounts, you may get a better rate on your CD.
- Compare multiple terms: Make certain you review CDs at various banks and credit unions to find a good fit for your financial portfolio.
- 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.
- 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.
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 Jan. 1, 2026.
*Capital One interest rates accurate as of Jan. 1, 2026. 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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- Vanguard "Brokered CDs"
