Don't Get Burned: It's a Smart Saver's Summer, According to New Vanguard Consumer Survey
Most Americans know they should save this summer but remain complacent.
VALLEY FORGE, Pa., June 9, 2025 /PRNewswire/ -- It's a smart saver's summer, according to Vanguard's new consumer survey, which found that 71% of Americans plan to shift their savings approach this summer to prioritize emergency savings and flexibility. But despite these intentions, Americans see obstacles to saving, citing time (28%), feeling like they don't have enough money to save (28%) and not knowing where to start (24%) as the top reasons for not making a change.
"There is a clear desire to save, but plans don't always translate to action since many consider creating a savings strategy to be daunting," said Matt Benchener, Managing Director of Vanguard's Personal Investor business. "Saving is essential to overall financial well-being, so it's crucial to tackle the actual and perceived barriers to saving. One way to do this is to save with intention by leveraging a high-yielding savings vehicle, like Vanguard's Cash Plus Account1, which allows Americans to earn more than eight times the average interest of a traditional bank savings account."
According to the survey, Americans feel weary about their spending and savings habits this summer.
- 67% are uncertain about their ability to stick to a savings plan due to market volatility.
- 63% expect to overspend this summer on basic life expenses (i.e., groceries and utility bills) or unexpected costs (i.e., medical expenses and home repairs).
- 64% do not completely understand how interest rates impact the money they save.
Despite these fears, nearly half of those surveyed keep savings in traditional bank savings accounts, which on average yield only .42%1, according to the FDIC.
"It's hard to make a change, but it's important to start somewhere," said Kate Byrne, Head of Vanguard Cash Plus Distribution. "There is no minimum amount needed to begin saving, so you should make sure that for every dollar saved, you are earning the returns you deserve by leveraging a high-yielding savings vehicle."
Vanguard's Cash Plus Account is currently yielding 3.65% APY, more than eight times a traditional bank savings account1. In addition to a better yield, Cash Plus offers FDIC coverage2, easy access to account and routing numbers for bill pay and direct deposit, connectivity to payment apps like PayPal and Venmo, and no minimum balance requirements. Along with Cash Plus, Vanguard also offers a full suite of liquidity solutions including money market and ultra-short-term bond funds. For more information on Cash Plus, visit vanguard.com/cashplus.
Survey methodology
The Cash Plus Survey was fielded by Big Village among a representative sample of 1,009 U.S. adults 18 years of age and older. This survey was live on April 23, 2025. Quota sampling is used to collect a nationwide sample of respondents who are weighted by gender, age, region, race/ethnicity, and education to mirror the demographical composition of the U.S. population using Current Population Survey proportions.
About Vanguard
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to tens of millions of individual investors around the globe—directly, through workplace plans, and through financial intermediaries. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.
Notes:
1The Cash Plus sweep program APY (annual percentage yield) is 3.65% effective May 16, 2025. The APY will vary and may change at any time. APY is current as of date of publication. Current APY is available at vanguard.com. Source for average bank savings yield of .42%: FDIC National Rate Caps as of May 19, 2025. There may be other material differences between these products that must be considered prior to investing.
2Bank sweep program balances are held at one or more Program Banks, earn a variable rate of interest, and are not securities covered by SIPC. They are not cash balances held by Vanguard Brokerage Services (VBS), a division of Vanguard Marketing Corporation (VMC); VMC is not a bank. Balances are eligible for FDIC insurance subject to applicable limits. See the list of participating Program Banks.
The Vanguard Cash Plus account is a brokerage account offered by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC. Under the Sweep Program, Eligible Balances swept to Program Banks are not securities: They are not covered by SIPC but are eligible for FDIC insurance, subject to applicable limits. Money market funds held in the account are not guaranteed or insured by the FDIC but are securities eligible for SIPC coverage. See the Vanguard Bank Sweep Products Terms of Use and Program Bank list on vanguard.com for more information.
A low annual account service fee of $25 is waived when you elect e-delivery of documents. You can sign up for e-delivery during and after the process of opening an account. There may be low fees for certain types of transactions. See the Vanguard Brokerage Services commission and fee schedules for details and exclusions.
Your account may be subject to various restrictions to reduce the risk of fraud. Your transactions may be subject to a 7-day holding period as well as daily transaction limits. Generally, new accounts will be subject to a 60-day holding period for cash and check deposits. During this time, you can invest with this cash, but cash deposits into your account may only be returned to the bank account from which the cash was withdrawn. After the holding period is complete, your funds will be fully available to transfer or withdraw.
For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
All investing is subject to risk, including possible loss of principal. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.
Bank savings accounts offer different services and features than a Vanguard Cash Plus Account. For example, savings accounts often offer features like overdraft protection, ATM access, bill pay services and other conveniences that Cash Plus Accounts do not offer. Cash Plus Accounts allow you to hold certain securities that bank savings accounts cannot hold. In addition, Cash Plus Accounts are subject to fraud prevention restrictions such as holding periods and transaction limits, which may not apply to a bank savings account. There may be other differences between these products that you may want to consider before choosing which option is best for you.
Some third-party institutions may not accept the Cash Plus Account routing number for transactions. If you have any issues using the routing number on a third-party website, contact the provider.
Vanguard Marketing Corporation, Distributor of the Vanguard Funds.
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SOURCE Vanguard