Is Vanguard safe? Full guide

Putting your savings and investments online takes trust. People want growth, but they also want peace of mind that their money and information stay protected.

Vanguard is among the most respected names in investing, with over 50 million clients¹ and a long track record built on low-cost funds and investor-first principles.

While you can add and withdraw funds as needed, Vanguard is built for investing and long-term saving, and not everyday banking

This guide breaks down how safe Vanguard is, the protections it provides, and the risks worth knowing before you rely on it for your money.

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Is Vanguard safe to use?

Yes, Vanguard is widely viewed as safe for investors. It operates under top US financial regulators, including the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). That means strict oversight on how it handles client money and investment activity.

Vanguard also separates client assets from its own company funds, so your investments aren’t mixed with operating accounts. But because it’s not a bank, protections apply differently depending on whether your money is invested or swept as cash.

For example, with brokerage protection, securities in a Vanguard account are covered by Securities Investor Protection Corporation (SIPC) insurance up to $500,000, including $250,000 for cash, in the rare case of broker failure.²

Beyond legal protections, Vanguard has built a reputation for reliability. It has decades of history, operating since 1975, and was named “Most Trusted” in the J.D. Power 2025 U.S. Investor Satisfaction Study.³

Is Vanguard FDIC insured?

Yes, Vanguard offers Federal Deposit Insurance Corporation (FDIC) insurance, but it applies only to certain cash balances, not investments.

Vanguard’s Cash Plus Account uses a bank sweep program, meaning your uninvested cash is held across multiple partner banks. This setup provides FDIC coverage up to $1.25 million for individual accounts and $2.5 million for joint accounts.⁴

If one of the program banks fails, the FDIC reimburses customers up to these limits, keeping your cash safe. You can verify coverage through the FDIC BankFind tool for each participating bank.

It’s important to note that FDIC insurance does not protect stocks, ETFs, mutual funds, or bonds held in a Vanguard brokerage account. For those assets, protection comes from SIPC coverage.

What are Vanguard’s safety features?

Vanguard implements a wide range of protections designed to keep your account and data secure. Here are the key protections it provides.

Multi‑factor authentication

Vanguard supports multi‑factor authentication (MFA) to strengthen account login protection. You can enable options such as security codes, biometrics (face/fingerprint), passkeys, or physical security keys.⁵ Vanguard’s Security Center requires these methods to help block unauthorized access.

Using a security key avoids reliance on SMS codes, which can be vulnerable to SIM swaps.

Real‑time alerts and monitoring

Vanguard offers account activity alerts and voice verification tools. You’re notified via email or text when transactions or profile changes occur, such as transfers out or device changes. These alerts enable a swift response in the event of something suspicious happening.

Access controls

Vanguard provides tools to manage which devices can access your account and remove any that shouldn’t. On the Vanguard app or website under Device Management, you’ll see a list of trusted devices. You can rename or remove them at any time.

If a device is lost or stolen, you can immediately remove it from your account’s trusted list, which helps prevent unauthorized access.

Unauthorized transaction reimbursement guarantee

Vanguard states that if you follow their security procedures and an unauthorized online transaction happens, they will reimburse you for the amount taken.⁶ Note that the policy applies to accounts directly held with Vanguard, and not to 529 plans, annuities, or activities authorized by your employer or plan sponsor.

Pros and cons of Vanguard

Before deciding if Vanguard is right for you, it helps to weigh its strengths and limitations.

Here are the main benefits and drawbacks of using Vanguard:

Vanguard’s strengths lie in its long-standing reputation, low-cost investment options, and strong regulatory oversight. It’s built for investors focused on long-term growth through US stocks, ETFs, mutual funds, and other investment products.

However, Vanguard is primarily an investment platform. It isn’t designed for seamless money transfers. If you frequently send or receive money abroad, you may find its offerings limited.

In that case, Wise offers a compelling alternative, letting you send, hold, and spend money at the mid-market exchange rate, making cross-border transactions transparent and cost-efficient.

Tips and tricks for avoiding scams with Vanguard

Even with strong protections, your vigilance matters. Here’s how to stay safe when using Vanguard:

• Verify all messages: Vanguard will never ask for your password, PIN, or security codes via email, text, or phone. Always confirm that communications come from official channels
• Use official platforms: Log in only through investor.vanguard.com or the Vanguard app. Avoid links from emails or messages that could be phishing attempts
• Enable account alerts: Turn on real-time notifications for transfers, profile changes, or unusual activity to spot suspicious behavior quickly
• Use strong authentication: Set up complex passwords and multi-factor authentication (MFA), including security codes, biometrics, or a physical security key

Vanguard also provides a Security Center with resources to help investors recognize and respond to fraud.

Pairing these habits with Vanguard’s built-in protections reduces the risk of fraud and unauthorized access.

Bottom line: Is Vanguard safe?

Yes, Vanguard is regarded as safe for your savings and investments. Regulated by top US authorities, including the SEC and FINRA, it separates client assets from company funds and offers SIPC coverage for brokerage accounts, as well as FDIC insurance for certain cash balances.

With decades of history, a strong reputation, and robust online security, it’s a reliable choice for US-based investing. However, Vanguard is primarily focused on the US market and doesn’t provide multi-currency accounts or global banking features.

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Sources

1. Vanguard - growth/number of clients
2. Vanguard - SIPC coverage
3. Vanguard - Most Trusted (JD Power 2025 U.S. Investor Satisfaction Study)
4. Vanguard - bank sweep program
5. Vanguard - security tools
6. Vanguard - reimbursement
7. Vanguard - commission-free funds

Sources checked 12/17/2025