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Vanguard Bank Sweep Program

Vanguard is initiating a bank sweep program in addition to its sweep into VMFXX. This is beta program by invitation only, and limited to brokerage accounts, not legacy mutual fund accounts. Current yield is 0.25%, not much different from VMFXX.

From one pdf:
Clients with eligible accounts may also enroll in a bank sweep product, which is an option under the sweep program that automatically sweeps participants’ free credit balances into one or more program banks, where the balances earn interest and are eligible for FDIC insurance, subject to applicable limits.

From the Bank Sweep Terms of Use pdf:
At this time, enrollment in the Bank Sweep is limited to current VBS clients that receive an invitation to enroll directly from VBS, and who own at least one Eligible Account at the time the invitation is sent.

There are currently two banks in the program: Valley National Bank and NexBank
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