Because excessive transactions can disrupt the management of a fund and increase the funds' costs for all shareholders, Vanguard limits frequent trading in most Vanguard funds. Read our frequent-trading policy.
Account redemption policies
Redemption proceeds. Although you can redeem shares at any time, proceeds may not be made available to you until the fund collects payment for your purchase. This may take up to seven days for shares purchased by check or electronic bank transfer. If you've written a check on a fund with checkwriting privileges, that check may be rejected if your fund account doesn't have a sufficient available balance.
Address changes. If you change your address by telephone, you may not have access to online and telephone redemption privileges for up to 14 days.
Redemption fees. Some funds charge redemption fees to defray high trading costs. You can find out if your fund charges redemption fees by checking the prospectus or by looking on vanguard.com. Go to our mutual fund list and click the Fees & Minimums link in the top menu of each fund profile page.
Redemption trade date. The redemption trade date is the day Vanguard receives your complete redemption instructions. If instructions are received after the close of the New York Stock Exchange, usually 4 p.m., Eastern time, or on a weekend or holiday, your trade date will be the next business day.
Backup withholding. If an authorized taxpayer identification number (e.g., Social Security number) has not been provided on your account registration form or certified with a W-9 Form, backup withholding equal to 28% of proceeds will be deducted from redemptions and dividend distributions, as required by law. Backup withholding may be avoided by submitting a W-9 Form to certify the Social Security number on your Vanguard account. Note: IRA accounts are not subject to backup withholding; however, they are subject to income tax withholding. IRA holders living outside the United States have different withholding requirements.
Share certificates. Any portion of your account represented by share certificates cannot be redeemed until you return the certificates to Vanguard. Certificates must be returned via registered mail, unsigned, along with a letter requesting the sale or exchange you wish to process.
Sending proceeds to a different person or address. To have proceeds sent to a different person or address, you must submit a written request signed by all account owners (as registered). This type of request may require all signatures to be guaranteed by a bank, broker, or other acceptable financial institution. Note: A notary public cannot provide a signature guarantee.
Wire redemption policies
Trade dates
Vanguard Prime Money Market Fund allows for same-day wires if you call any business day before 2 p.m., Eastern time. All other Vanguard money market funds have a 10:45 a.m. same-day wire cutoff time.
Requests for wires from other funds are processed the same day at the fund's then-current net asset value if you call before 4 p.m., Eastern time. These wires should reach your bank by the close of the following business day.
Fees and minimum wire amounts
Vanguard charges a $10.00 wire fee for each holding you're redeeming from. Your bank may also charge a fee to receive or accept a wire. Vanguard doesn't charge a fee for electronic bank transfers.
The minimum wire amount is $1,000. Wire redemptions generally are not available for Vanguard's balanced or stock funds.
Frequent-trading policy
If you sell or exchange shares of a Vanguard fund, you will not be permitted to buy or exchange back into the same fund, in the same account, within 30 calendar days. However, this rule does not apply to:
Vanguard money market and short-term bond funds (with the exception of Vanguard Short-Term Inflation-Protected Securities Index Fund).
Vanguard ETF® Shares.
Discretionary transactions through Vanguard Personal Advisor Services and Vanguard Institutional Advisory Services.
Purchases of shares with fund dividends or capital gains distributions. For example, if you reinvest dividends or capital gains, these purchases will not be blocked even if shares in the fund were sold or exchanged within the previous 30 days.
Transactions made through Vanguard's Automatic Investment Plan, Automatic Exchange Service, Direct Deposit Service, Automatic Withdrawal Plan, Required Minimum Distribution Service, and Vanguard Small Business Online®.
Sales of shares by Vanguard to pay fund or account fees.
Transfers and reregistrations of shares within the same fund.
Purchases of shares by asset transfer or rollover.
Conversions of shares from one share class to another in the same fund.
Sales of shares through checkwriting.
Section 529 college savings plans, certain approved institutional portfolios and asset allocation programs, as well as trades made by funds or trusts managed by Vanguard or its affiliates that invest in other Vanguard funds. (Please note that shareholders of Vanguard's funds of funds are subject to this policy.)
For information about the Vanguard Variable Insurance Funds' frequent-trading policy, see the funds' prospectus. A separate policy applies to participants in employer-sponsored retirement plans administered by Vanguard.
