Is money in a Vanguard account FDIC insured?
No… because investments are never FDIC insured. That’s only for cash held at banks. It’s the government’s way to make you whole if the bank goes under.
Your investments aren’t just cash being held by a bank, but rather ownership of stocks and bonds out in the world. So that same kind of insurance doesn’t’ really make sense.
There is such thing as SIPC insurance, which protects cash, stocks, bonds, etc held in brokerage accounts. Vanguard does provide SIPC insurance.
Jeremy, what does this mean?
“Coverage provided by SIPC and Lloyd’s of London Syndicates does not protect against loss of market value of securities.”
That means if you buy Apple stock, then Apple goes out of business, you still lose all your money. They’re not protecting the outcome of your investments, just against things like Vanguard going out of business.