Bank_Sweep_Terms_of_Use.pdf

Vanguard Bank Sweep Products Terms of Use Updated December 2023 The following Terms and Conditions (“Terms”) govern Your participation in Vanguard’s bank sweep products (the “Bank Sweep”) offered by Vanguard Brokerage Services (“VBS”), a division of Vanguard Marketing Corporation, to the owners of...

Vanguard Bank Sweep Products Terms of Use Updated December 2023 The following Terms and Conditions (“Terms”) govern Your participation in Vanguard’s bank sweep products (the “Bank Sweep”) offered by Vanguard Brokerage Services (“VBS”), a division of Vanguard Marketing Corporation, to the owners of brokerage accounts that meet certain eligibility requirements described below (each an “Account”). The Bank Sweep consists of “Vanguard Cash Deposit” in the Vanguard Brokerage Account and “Vanguard Cash Plus” in the Vanguard Cash Plus Account. The Bank Sweep is designed to “sweep” (that is, to automatically transfer) the Free Credit Balances in Your Account (“Eligible Balances”) into deposit accounts at one or more participating Bank Sweep Program Banks (each a “Program Bank”), where they may be eligible for insurance provided by the Federal Deposit Insurance Company (“FDIC”), as described below. These Terms provide You with important information about how the Bank Sweep works. Further, while enrolled in the Bank Sweep, these Terms supplement the terms and conditions contained in the Vanguard Brokerage Account Agreement (“Brokerage Agreement”) and related documents. Any capitalized terms used but not defined in these Terms shall have the meaning set forth in Your Brokerage Agreement and related documents. 1. Bank Sweep Eligibility and Enrollment in Your Account and transfer the sale proceeds, 1.1 Eligible Accounts. Only certain types of Accounts and net debits, to the Bank Sweep program, which will clients are eligible to participate in the Bank Sweep. become your default investment option for Eligible For a complete list of Accounts eligible to enroll in the Balances. If You wish to invest in the Money Market Bank Sweep, visit https://personal.vanguard.com/ Fund as an investment holding in Your Account, You pdf/111821_Bank_Sweep_Eligibility_Requirements. may do so by buying shares of the fund after You have pdf for Vanguard Cash Deposit or https://investor. enrolled in the Bank Sweep. Important: investments vanguard.com/accounts-plans/vanguard-cash-plus- in Vanguard’s Money Market Fund are not guaranteed account for Vanguard Cash Plus. VBS reserves the or insured by the FDIC, but are securities eligible for right, in its sole discretion, to modify or delete the SIPC coverage. types of clients and/or brokerage accounts that are 2. Bank Sweep Deposit Accounts. eligible to enroll in the Bank Sweep. 2.1 Omnibus Accounts. Under the Bank Sweep, 1.2 N  o Minimum Balance Requirements. There is no Eligible Balances are automatically swept by VBS minimum Eligible Balance amount required to either into interest-bearing deposit accounts (“Deposit enroll in the Bank Sweep or continue to participate in Accounts”) at one or more Program Banks. These the Bank Sweep. There is also no minimum period that Deposit Accounts are comprised of an omnibus Your funds held in the Bank Sweep must remain on interest bearing Demand Deposit Account (“Omnibus deposit with any Program Bank, and no limitation on DDA”), an omnibus Money Market Demand Account the number or amount of withdrawals under the Bank (“Omnibus MMDA” or “MMDA”), and/or, for qualifying Sweep. There are maximum balance limits depending Brokerage Accounts, an omnibus Negotiable Order on Program Bank capacity and other factors. of Withdrawal Account (“Omnibus NOW Account” or “NOW”), and are held in each case in the name 1.3 F  or Vanguard Brokerage Accounts. Once You of VBS (or its authorized representative) as agent complete Your enrollment into Vanguard Cash for the exclusive benefit of VBS’ customers, acting Deposit, VBS will sell Your shares of Vanguard’s for themselves and others, or a similar designation Federal Money Market Fund (“Money Market Fund”) (together, the “Omnibus Accounts”). The Omnibus 1  NOW Account and Omnibus DDA function as Your Eligible Balances will not be swept in a prioritized transaction accounts (“TAs”) for purposes of or sequential order to a subset of Program Banks processing deposits and withdrawals, but you will participating in VBS’ Bank Sweep. Certain Program earn the same rate of interest (summarized below) Banks limit Your Eligible Balances. regardless of the Omnibus Account in which Your Sweep Deposits are held. 3.2 Opting out of a Program Bank. You may designate a Program Bank as ineligible to receive Your Eligible 2.2 The Subaccount. You will have an interest in the Balances. In addition, You may at any time instruct Omnibus Accounts equal to the aggregate amount of us to remove Your funds from a Program Bank, close Your Sweep Deposits at each Program Bank, plus the Your Deposit Accounts with the Program Bank and interest that accrues on Your Sweep Deposits. (Your designate the Program Bank as ineligible to receive interest in each Omnibus Account is referred to as future Eligible Balances. Requests received in good Your “Subaccount”). The Subaccount will be evidenced order will be processed as soon as practicable, but by an entry on records maintained by VBS, and not delays can occur. directly on the records of any Program Bank. You must allow funds to be swept into at least 2.3 Account Transfer Restrictions. There are no legal one Program Bank, subject to certain conditions, restrictions on the number of transfers that may be including but not limited to each Program Bank’s made from an MMDA. In the event of a change in law available capacity and FDIC insurance coverage limits. or regulations that imposes any such restrictions, We Otherwise, VBS will unenroll Your Account from the may update these Terms to reflect such change in law Bank Sweep. Refer to Sections 9 and 10 below for or regulations. more information on Bank Sweep suspensions and terminations and Account closing. 3. Program Banks and Excess Banks. 3.1 Program Bank Information. Under the Bank Sweep, 3.3 Excess Banks. Under the Bank Sweep, one or more Your Eligible Balances will be swept into Deposit Program Banks will accept Your funds without limit Accounts at one or more Program Banks based on and without regard to the Standard Maximum the deposit capacity of Program Banks and other Deposit Insurance Amount (SMDIA, currently factors. VBS maintains a list of participating Program $250,000) for federal deposit insurance (“Excess Banks on its website at the following address: Banks”). You may not designate all of the Excess https://personal.vanguard.com/pdf/Bank_Sweep_ Banks as ineligible to receive Your excess funds (if Participating_Banks.pdf. VBS does not guarantee any). Funds placed with the Excess Banks in excess the financial condition of any Program Bank, or of the SMDIA will not be eligible for FDIC deposit the accuracy of any publicly-available information insurance. VBS reserves the right to designate Excess concerning any Program Bank. Your Sweep Deposits Banks in its sole direction without prior notice. are a direct obligation of the Program Bank that 4. Deposit Procedures. holds them and are not, either directly or indirectly, guaranteed by VBS, its parent company, or any of 4.1 Daily Sweep. Each Business Day (as defined below), its subsidiaries or affiliates. You can obtain publicly- VBS will sweep the Eligible Balances in Your Account available financial information about each Program to the Program Bank(s). For purposes of these Bank at the FDIC’s website at fdic.gov. Terms, “Business Day” means any day that is not (a) a Saturday or a Sunday or (b) a bank holiday We will provide You written notification of the specified in the banking holiday calendar published addition of any Program Banks, or if any Program by the Federal Reserve Bank of New York. Depending Bank will no longer participate in the Bank Sweep. on the time You enroll or VBS receives additional Prior written notice of other changes will be provided Eligible Balances for Your Account, it may take up to as soon as practicable, and will be posted on our two (2) Business Days for Your Eligible Balances to website (vanguard.com) prior to becoming effective. be deposited at one or more Program Banks. In some The Program Bank(s) that hold Your Eligible Balances instances, delays can occur. will also appear on Your periodic statements. It is Your responsibility to review the list of Program Banks 4.2 Program Bank Deposit Limit. VBS will deposit Eligible periodically, and to inform VBS of any Program Banks Balances in Your Account into Deposit Accounts in that you do not wish to receive Your Eligible Balances. each Program Bank up to the Program Bank Deposit Limit of $247,500 in order to permit the greatest 2  amount of Your Eligible Balances to be eligible for from the TA. The Program Bank and VBS in their FDIC insurance coverage. Once $250,000 has been discretion may determine a minimum, or “threshold”, deposited in each Program Bank, any additional amount to be maintained in Your TA to satisfy debits funds will be deposited into a designated “Excess in Your Account. Bank,” without limit and without regard to maximum available FDIC insurance coverage. 6. Bank Sweep Records. 6.1 Access via Your Bank Sweep Account. Although 5. Withdrawal Procedures. Your Sweep Deposits are a direct obligation of the 5.1 Withdrawal Consent. When You enroll in the Bank respective Program Bank, You will receive no separate Sweep, You consent to have Your Sweep Deposits evidence of ownership from any Program Bank, and automatically withdrawn from one or more Program you will only have access to Your funds deposited Bank(s) in the event of a net debit position in Your in Program Banks through the Sweep transaction Account, including as a result of the settlement of process. Your Bank Sweep account records and purchase transactions or other charges posted to Your information will be evidenced by an entry on records Account (e.g., wire transfers). Checks, ACH payments, maintained by VBS, as the custodian of Your Account wire transfers, and other transactions and items for assets. If You have any questions or comments related Your Account are processed through Your VBS Account to the Bank Sweep, including questions related to any rather than directly with any Program Bank under the Program Bank, You should contact VBS, and not the Bank Sweep. VBS will withdraw Your Sweep Deposits Program Bank directly. with the Program Banks to satisfy any net debit position in your Account on the Business Day following 6.2 Account Statements. Your periodic VBS Account the debit’s posting. statement will summarize account activity related to the Bank Sweep, including Your ending balance, as 5.2 Withdrawal Sequence. VBS will process all well as deposit, withdrawal, and interest information withdrawals from Your TA at the Program Banks; related to Your Eligible Balances at Program Banks You cannot directly add cash to or directly withdraw for the period covered. You will not receive a separate from a Program Bank account. If funds in the TA statement from any Program Bank. Please retain Your at a Program Bank from which funds are being Account statements for Your records. withdrawn are insufficient to satisfy a debit, funds in the related MMDA at that Bank will be transferred 6.3 Directly Held Accounts at a Program Bank. You have to the TA to satisfy the debit, plus funds to maintain the right to establish a direct deposit relationship any TA threshold amount We or the Program Bank with any Program Bank, subject to the rules of such establish from time to time. We are permitted to Program Bank for establishing and maintaining such withdraw funds from Your Deposit Accounts in any a direct deposit relationship. order. If there are insufficient funds in Your Deposit 7. Yield on Your Eligible Balances. Accounts to satisfy the debit, VBS will withdraw funds from other available sources as described in 7.1 Yield. You will earn yield that will accrue daily based Your Brokerage Agreement. on the Sweep Deposits at each Program Bank. At this time, VBS will pass along the same yield on Sweep 5.3 Accessibility of Eligible Balances. Pursuant to federal Deposits, regardless of which Program Bank holds the banking regulations, the Program Banks must reserve assets. However, that could change in the future. The the right to require seven days’ prior written notice amount of the annual percentage yield (“APY”) earned before funds are withdrawn or transferred from a on Your Sweep Deposits will be stated on Your VBS NOW account or an MMDA. DDAs are not subject to Account statement and accessed under Current APY this restriction. In addition, in the event of a failure of Information below. The yield will be credited and paid a Program Bank, access to Your Sweep Deposits at by the Program Bank: (a) at the end of each month, that Program Bank may be restricted. (b) on the date Your Account closes, or (c) when You withdraw all of Your Sweep Deposits. 5.4 Maintaining Threshold Balances. VBS will deposit Eligible Balances from Your Account into the 7.2 Accrual. Yield will begin to accrue on the day Your MMDA at each Program Bank as set forth above. Sweep Deposits are credited to the Program Bank As necessary to satisfy withdrawals, funds will be and will accrue up to—but not including—the day on transferred from Your MMDA to the related TA at which Your Sweep Deposits are withdrawn from any each Program Bank and withdrawals will be made Program Bank. 3  7.3 D  etermination of APY. Yield on Your Sweep Deposits a VBS Account using the Money Market Fund Sweep will be paid by the Program Bank(s). The yield You will to an Account using the Bank Sweep, VBS will earn on Sweep Deposits varies and may change at any liquidate your Money Market Fund investments on time. It may be tiered based on the balance of Your the day of transfer, and then deposit these funds in Sweep Deposits that have been placed with Program the Bank Sweep the next day. You will not receive a Banks, plus the value of any additional Accounts or dividend or interest on the day Your money market assets held at VBS that in the future may be added funds are liquidated. for purposes of qualifying for a particular yield tier, as well as other criteria that can be established by 8.2 Program Banks. The Program Banks will use Your VBS and disclosed to you from time to time (“Eligible Sweep Deposits in the Omnibus Accounts to support Assets”). The yield for each tier may be based on a their investment lending and other activities. The number of factors, including general economic and profitability of each Program Bank is determined in business conditions. VBS can offer different products part by the difference between the interest it pays or services that offer different yields. Customers with on the Omnibus Accounts (and other costs incurred), higher amounts of Eligible Assets generally will receive and the interest or other income it earns on loans, higher interest rates on their Bank Sweep Deposits investments and other assets. Program Banks will than customers with lower amounts of Eligible Assets. receive substantial deposits from the Bank Sweep at a price that may be less than alternative funding 7.4 Current APY Information. To find out current APY sources. Sweep Deposits in the Omnibus Accounts information for the Bank Sweep, You may visit held at a Program Bank provide a stable source of https://investor.vanguard.com/vanguard-cash- funds for such bank. None of the Program Banks are deposit for Vanguard Cash Deposit and https:// affiliated with Vanguard. investor.vanguard.com/accounts-plans/vanguard- cash-plus-account for Vanguard Cash Plus. 9. Suspension/Termination of Bank Sweep by VBS. 9.1 Suspension of Bank Sweep. In its sole discretion, VBS 8. Conflicts of Interest. can determine that it is necessary or advisable to 8.1 VBS/VMC. Program Banks pay a fee to VBS for suspend Your participation in the Bank Sweep, or to Sweep Deposits that is retained by VBS as revenue. suspend making the Bank Sweep program generally The fee that VBS receives: (i) is set by VBS, (ii) may available to any group of or all of its clients. If Your vary from Program Bank to Program Bank, (iii) may Account is subject to a suspension of Bank Sweep, be changed by VBS at any time, and (iv) will affect then VBS will notify You in advance (if practicable). the yield clients receive from the Bank Sweep. Clients During any suspension, You authorize VBS to sweep that enroll in the Bank Sweep receive a lower yield on any Eligible Balances that would otherwise be deposits under the Bank Sweep than if Vanguard had subject to the Bank Sweep into an alternative Sweep not earned this fee because Program Banks reduce the Program, or to maintain it as a Free Credit Balance. amount of interest they are willing to pay depositors The Eligible Balances held through an alternative by the amount of the fee they pay to VBS. Clients that Sweep Program may not be FDIC-insured. Once enroll in the Bank Sweep typically receive a lower yield the suspension is concluded, VBS will then seek to than the Program Banks pay to some other customers re-deposit such Eligible Balances. During any such who make deposits directly at the Program Banks. suspension, You will earn any interest or yield on the Based on the fee set by VBS, the return You receive on alternative sweep vehicle selected by VBS, and VBS Eligible Balances under the Bank Sweep can be higher will not compensate you for any difference between or lower than that offered under VBS’ alternative what You may have earned in the Bank Sweep absent Sweep Program for the Vanguard Brokerage Account: such temporary suspension. A temporary suspension the Vanguard Federal Money Market Fund. Money will also not revoke Your enrollment in the Bank Sweep. market mutual funds have a fiduciary duty to seek to maximize the return paid to clients, subject to the 9.2 Termination of Bank Sweep Enrollment by VBS. fundamental investment policies of the money market VBS reserves the right to terminate Your participation mutual funds. By contrast, a bank is not required in Bank Sweep. In such event, it will notify You to seek to maximize the interest rate paid on client in advance if practicable, and then transfer Your deposits. Sweep Deposits to an alternative Sweep Program or maintain Your Eligible Balances as a Free Credit Transfers Between VBS Accounts. If You own more Balance. The Eligible Balances held through an than one VBS Account and You transfer funds from alternative Sweep Program may not be FDIC-insured. 4 10. Bank Sweep Termination and Account By enrolling, You agree to receive notice and electronic Closing by You. delivery of the Bank Sweep Disclosures as described above. You also agree that You have access to the 10.1 Termination by You. You may terminate Your hardware and software required to access the electronic participation in the Bank Sweep at any time. If you notification and any related links on Vanguard’s website, unenroll in Bank Sweep, VBS will sweep Your Deposits and to download or print the Bank Sweep Disclosures. at each Program Bank to an alternate Sweep Program This provision relates solely to notice and electronic option, or hold all or a portion of them as Free Credit delivery of the Bank Sweep Disclosures: VBS will continue Balance. The Eligible Balances held through an alternate to follow Your mail preferences (that is, e-delivery or Sweep Program may not be FDIC-insured. For Vanguard U.S. mail) for all other records related to Your Account. Cash Deposit within Vanguard Brokerage Accounts, if You may request paper copies of current Bank Sweep You do not want any Program Banks to receive Your Disclosures by contacting VBS. Eligible Balances, You should not enroll in the Bank Sweep or unenroll from the Bank Sweep by selecting 13. Your Responsibility to Monitor Your Eligible the alternative Sweep Program at vanguard.com. For Cash Investment Options. Vanguard Cash Plus within Vanguard Cash Plus Accounts, if you do not want any Program Banks to receive Your Neither VBS nor any of its agents or service providers Eligible Balances, you should close Your Account. have any obligation to monitor Your Eligible Balance, including monitoring for FDIC insurance limits at 10.2 Closing Your Account. If You close Your Account by Program Banks, Your decision whether to participate transferring or redeeming all of the assets, Your Sweep in the Bank Sweep, or Your decision whether to opt out Deposits from each Program Bank will be swept and of one or more Program Banks holding Your assets. the balance, net debits, will be paid out as You instruct. As Your personal financial circumstances and other Vanguard Brokerage Accounts and Vanguard Cash Plus factors change, it may be in Your interest to change Accounts must have a zero dollar balance to be closed. Your Sweep Program options or to invest cash from Your Brokerage Account in other investment vehicles. 11. Limitations of “Beta” Program. You can review Your investment options and other By enrolling, You are agreeing to participate in a “pilot” investments, as well as the current rates and returns of or “beta version” of the Bank Sweep that is still under each by visiting vanguard.com. development, and has not been released for sale, distribution or use by the general public. As a result, the 14. Impacts to Asset Protection: SIPC Insurance vs. Bank Sweep available in “beta version” is not the final FDIC Insurance. Bank Sweep product or offer, and it is likely that certain 14.1 Securities Investor Protection Corporation (“SIPC”). additional Bank Sweep capabilities that will be available When assets are swept into one or more Program in the future are not available in the “beta version” made Banks under the Bank Sweep, they are not covered available to You at this time. by SIPC; instead, when they are received by the Program Banks, they are eligible for FDIC insurance, 12. Electronic Notice and Delivery of discussed below. Assets held at a Program Bank are Bank Sweep Disclosures. not securities. Refer to the Brokerage Agreement for VBS anticipates that several documents related to additional information about SIPC and how it applies the Bank Sweep may change frequently, particularly to Your Account. any amendments to these Terms and changes to the Program Bank List (collectively, “Bank Sweep 14.2 FDIC-insured Accounts. The Bank Sweep seeks to Disclosures”). VBS will provide You with prior written provide You with the security of FDIC insurance for notice of changes to the Bank Sweep Disclosures by Your Eligible Balances held on deposit at Program sending You an electronic message, including via email Banks (“Sweep Deposits”). FDIC insurance provides or Vanguard’s Secure Message Center, available on protection against the loss of Your Sweep Deposits, Vanguard’s website when you log in. The notice will also up to allowable limits, in the event the Program Bank provide You with electronic delivery of the Bank Sweep fails. FDIC deposit insurance is backed by the full Disclosures and any changes to them by providing links faith and credit of the United States. Specifically, to updated documents in portable document format as noted in Section 4b of the Brokerage Agreement, (“PDF”) on Vanguard’s website. FDIC deposit insurance coverage is available for Your Sweep Deposits up to the FDIC standard 5  maximum deposit insurance amount (“SMDIA”), does not monitor or take any responsibility for any which is currently $250,000 per insurable category funds or deposits You may have at any Program of account ownership at that Program Bank, when Bank outside the Bank Sweep for the specific aggregated with all other deposits held by You at VBS Account. Money You hold on deposit with any such bank and in the same insurable category of Program Bank that is separate from Your Sweep account ownership. Special FDIC rules apply to Deposit, including any other deposit product offered insurance of trust accounts as well as certain other through VBS or its affiliates that qualifies for FDIC types of accounts. VBS will aggregate and allocate insurance (e.g., certificates of deposit), will not be Bank Sweep deposits for trust accounts at the taken into account in determining whether to sweep account level and not at the beneficiary level. Your Your Eligible Deposit Balances to the Bank through Eligible Balances will be eligible for FDIC insurance the Bank Sweep product. once they are transferred to and are held at the Program Banks as Sweep Deposits. If the total In addition, if You have more than one Account with amount of deposits that You hold at a Program Bank the same category of account ownership, the Sweep in the same insurable category of account ownership Deposits in all such Accounts that enroll in the Bank (including deposits made through the Bank Sweep Sweep will be aggregated in order to determine the at an Excess Bank (defined above), deposits You amount covered by FDIC insurance. For example, if hold outside of the Bank Sweep product and other the SMDIA is $250,000 and You have $30,000 in Accounts that enroll in the Bank Sweep) exceeds Sweep Deposits in Account 1 and $30,000 in Sweep applicable FDIC insurance limits, the excess amount Deposits in Account 2 at a particular Program Bank, will not be eligible for FDIC insurance and You will be as well as $200,000 on deposit with that Program exposed to the credit risk of the Bank with respect to Bank outside of Your Accounts, only $250,000 the amount of the excess. of Your $260,000 will be eligible to be insured by the FDIC. If You have questions about basic FDIC 14.3 Your Responsibility to Monitor FDIC Insurance insurance coverage, You may wish to seek advice Limits. The Bank Sweep program establishes a from Your own attorney, including concerning FDIC maximum amount of Your Eligible Balances that may insurance coverage of deposits held in more than one be placed for deposit through the Bank Sweep at insurable capacity. You may also obtain information all Program Banks (the “Maximum Eligible Deposit by contacting the FDIC, Deposit Insurance Outreach, Balance Amount“), as well as a maximum amount Division of Depositor and Consumer Protection, of Your Eligible Balances that may be placed at any by letter (550 17th Street, N.W., Washington, D.C. one Program Bank through the Bank Sweep (the 20429), by phone (877-275-3342 or 800-925-4618 “Program Bank Deposit Limit”). Eligible Balances (TDD), by visiting the FDIC Website at www.fdic. in Your Account up to the Program Bank Deposit gov/deposit/index.html, or by e-mail using the Limit then in effect may be deposited through the FDIC’s On-line Customer Assistance Form available Bank Sweep program with a Program Bank even on its website. Disclosures regarding FDIC insurance if the amount of Your Sweep Deposits with the coverage in these Terms are summary only, do not Program Bank, when aggregated with other funds state all of the requirements and conditions of FDIC that You maintain in the same insurable category insurance, and are subject to, and qualified in their of ownership with the Program Bank, exceeds the entirety by, regulations and guidance of the FDIC. SMDIA. You are solely responsible for monitoring the aggregate amount that You have on deposit 15. Additional Vanguard Cash Plus Account with each Program Bank in connection with FDIC Features. insurance limits, including through other accounts This section sets forth additional information about Your with VBS. As described in Section 3 above, You have Vanguard Cash Plus Account (the “Cash Plus Account”). the right to designate Program Banks as ineligible to receive Your Eligible Balances. (As described in 15.1 Certain Features and Limitations of the Cash Section 3 above, we will notify you of the addition Plus Account. The Cash Plus Account is a separate of any Program Banks participating in the Bank brokerage account that complements Your Vanguard Sweep.) If You have other funds on deposit at a Brokerage Account (“VBA”) by helping You manage Program Bank (outside of the Bank Sweep), You Your cash assets. Although it is a brokerage account, should consider designating that Program Bank there are features of the VBA that are not available as ineligible to receive Your Eligible Balances. VBS in the Cash Plus Account at this time, including, without limitation the following: 6  Available Sweep Options. The only Sweep option 15.3 Initial Disclosures Required by Regulation E. available for Your Cash Plus Account is the Bank Sweep. Consumer Liability. Tell Us AT ONCE if You believe the username and password associated with Your Trading/Holding Securities. The Cash Plus Cash Plus Account on vanguard.com (“Your Online Account currently offers the ability to invest in Credentials”) have been lost or stolen, or if You eligible Vanguard money market funds. For more believe that an unauthorized transaction has been information, visit https://investor.vanguard.com/ made without Your permission using Your Online accounts-plans/vanguard-cash-plus-account. VBS Credentials. Telephoning is the best way of keeping reserves the right to reject incoming non-eligible Your possible losses down. You could lose all the Securities transfers or remove any non-eligible money in Your Cash Plus Account. If You tell Us Securities that post to a Cash Plus Account. within 2 Business Days after You learn of the loss or theft of Your Online Credentials, You can lose no No Check Writing. Check writing is not an available more than $50 if someone used them without Your feature on the Cash Plus Account. permission. 15.2 Transfer Capabilities in the Cash Plus Account. If You do NOT tell Us within 2 Business Days after You The Cash Plus Account includes money transfers to learn of the loss or theft of Your Online Credentials, and from Your Cash Plus Account using the routing and We can prove We could have stopped someone and account number provided by VBS (“Cash Plus from using Your Online Credentials without Your Transfers”). permission if You had told Us, You could lose as much as $500. Direct Deposits. You can have Your employer, retirement plan or government agency send funds Also, if Your statement shows ACH Transactions that to Your Cash Plus Account. These funds may include, You did not make, including those made by the use without limitation, some or all of Your wages, Social of Your Online Credentials or other means, tell Us at Security and other government payments, pension once. If You do not tell Us within 60 days after the and/or 401(k) disbursements, and tax and other statement was mailed to You, You may not get back refunds. any money You lost after the 60 days if We can prove that We could have stopped someone from taking Direct Payments. You may authorize a third party the money if You had told Us in time. If a good reason to pull funds from Your Cash Plus Account by giving (such as a long trip or a hospital stay) kept You from the third party the routing and account number. telling Us, We may extend the time periods. Examples of Direct Payments include, without limitation, paying monthly bills, donating to a charity, Contact in event of unauthorized transaction. If and paying businesses for their products or services You believe Your Online Credentials have been lost online or by phone. The third parties You authorize or stolen, call VBS at 800-242-7455 or write to Us must be located in the United States. at Vanguard Brokerage Services, Attn: Investment Services, P.O. Box 982901, El Paso, TX 79998-2901. All Cash Plus Transfers will be credited or debited You should also call if You believe an unauthorized to or from Your Cash Plus Account as a transfer of transaction has been made without Your permission. funds processed through the Electronic Payments Association’s ACH network (“ACH Transactions”). Business Days. For purposes of these disclosures, These credits and debits are normally subject Our Business Days are any day that is not (a) a to the rules of the electronic payments network Saturday or a Sunday or (b) a bank holiday specified that processes them, such as the rules of the ACH in the banking holiday calendar published by the network. All ACH Transactions must be made Federal Reserve Bank of New York. between United States banks located in the United States. You cannot request international ACH Transfer types and limitations. Transactions. If the available cash in Your Cash Plus  ccount access. You may, subject to limitations: (i) A Account is insufficient to cover a transaction, VBS withdraw from Your Cash Plus Account, (ii) make will decline it. deposits to Your Cash Plus Account, (iii) transfer funds between Your Cash Plus Account and certain 7 other brokerage accounts, and (iv) pay bills directly Preauthorized payments. VBS will not accept by telephone or electronically from Your Cash Plus instructions from You to make regular payments out Account through third party providers. of Your Cash Plus Account on Your behalf. You may, however, be permitted to schedule preauthorized Limitations on frequency of ACH Transactions in payments with a third party. You may place stop Your Cash Plus Account. There are no limits on the payments on recurring debits for Your Cash Plus frequency of ACH Transactions at this time. VBS Account by calling or writing VBS. You should reserves the right to limit the frequency of ACH also notify the third party to whom You gave Transactions You may perform for security or other authorization for the recurring debits to cancel that reasons, and will notify You of any such restrictions authorization. If You notify VBS at least 3 Business as appropriate. Days in advance of the scheduled payment, and give Us sufficient information to identify the recurring Limitations on dollar amounts of ACH Transactions payment, We will either refuse the debit or refund in Your Cash Plus Account. Vanguard may restrict the amount debited. You may call VBS at 800-242- the dollar amount of withdrawals from or deposits 7455 or write to Us at Vanguard Brokerage Services, to Your Cash Plus Account(s). Generally, We will limit Attn: Investment Services, P.O. Box 982901, El Paso, withdrawals requested on Our website, or deposits TX 79998-2901. requested on Our website, to $100,000 in a single Business Day. If You request multiple withdrawals VBS’ Liability. If We do not complete an ACH or deposits on our website in a single day, We will Transaction to or from Your Cash Plus Account on process them in the order in which We receive them time or in the correct amount according to Our (including any preauthorized debits You may have agreement with You, or if, after proper notice, We established), and We will reject the ACH Transactions do not stop a preauthorized recurring payment, We that would cause You to exceed the limits as outlined will be liable for Your losses or damages. However, above. there are some exceptions. We will not be liable, for instance: Fees. VBS will not charge You for Cash Plus Transfers. Your bank or a third party payor may charge You fees. If, through no fault of Ours, the amount of the ACH Transaction You attempt exceeds the available cash Confidentiality. We will disclose information to and sweep fund balances in Your Cash Plus Account, third parties about Your Cash Plus Account or the excluding those balances that are subject to VBS’ transactions You make: seven-day hold or that otherwise have been placed W  here it is necessary for completing transactions, on hold to ensure payment of previously authorized or transactions, or are otherwise restricted; In order to verify the existence and condition of Your If the ACH Transaction You attempt exceeds the account for a third party, such as a credit bureau or maximum daily ACH Transaction amount, as merchant, or described above; In order to comply with government agency or court If circumstances beyond Our control (such as fire, orders, or inclement weather, flood or other natural disaster) prevent the ACH Transaction, despite reasonable In conformance with Our Privacy Policy, or precautions that We have taken. If You give Us Your written permission. T  here may be other exceptions stated in Our Documentation. agreement with You. P  reauthorized Credits and Debits. If You have 15.4 Error Resolution Notice. In cases of errors or arranged to have credits or debits made directly questions about Your ACH Transactions notify to/from Your Cash Plus Account, You can log on to Us as soon as possible, including if You think Your Your account at vanguard.com or call VBS at statement or confirmation is wrong or if You need 800-242-7455 to find out whether or not the credit more information about an ACH Transaction listed or debit has been made. on the statement or confirmation. We must hear P  eriodic statements. You will get a monthly from You no later than 60 days after We sent the Cash Plus Account statement, unless there is no FIRST statement on which the problem or error Brokerage Activity in a particular month. In any appeared. You may call VBS at 800-242-7455 or case, You will get a statement at least quarterly. 8 write to Us at Vanguard Brokerage Services, Attn: Investment Services, P.O. Box 982901, El Paso, TX 79998-2901. Tell Us Your name and account number. D  escribe the error or the ACH Transaction You are questioning and explain as clearly as You can why You believe it is an error or why You need more information. Tell Us the dollar amount of the suspected error. If You tell Us orally, We may require that You send Us Your complaint or question in writing within 10 Business Days. We will determine whether an error occurred within 10 Business Days after We hear from You and will correct any error promptly. If We need more time, however, We make take up to 45 days to investigate Your complaint or questions. If We decide to do this, We will credit Your account within 10 Business Days for the amount You think is in error, so that You will have the use of the money during the time it takes Us to complete Our investigation. If We ask You to put Your complaint or question in writing and We do not receive it within 10 Business Days, We may not credit Your account. For errors involving new accounts, We may take up to 90 days to investigate Your complaint or questions. For new accounts, We may take up to 20 days to credit Your account for the amount You claim is in error. We will tell You the results within three Business Days after completing Our investigation. If We decide there was no error, We will withdraw any credit we made to Your account and send You a written explanation. You may ask for copies of the documents that We used in Our investigation. 9 Connect w­­­­­­­ith Vanguard® > vanguard.com Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, member FINRA and SIPC. © 2023 The Vanguard Group, Inc. All rights reserved. BASWEEPER 122023