With the current banking crisis heating up there's the potential things could get really stupid over the next couple days/weeks. If folks have cash stashed in banks, brokerage firms, U.S. Treasuries/Bonds (Treasury Bills, Treasury Notes, Treasury Bonds, or Treasury Inflation - Protection Securities - TIPS), Other Bonds (Municipal, Corporate, etc) - now would be a good time to double check what type/amount $$$ of insurance coverage you have. Vanguard doesn't have any FDIC protection/coverage but they do have 'Securities Investor Protection Corporation (SIPC)' insurance. Me and my wife also have cash being held in separate Vanguard ROTH IRA accounts. These two ROTH IRA accounts are currently in the Vanguard Federal Money Market Holding Fund (VMFXX) and each account has 500K SIPC insurance protection (Total coverage = 1 million). I also have brokered CDs with Vanguard but the commercial bank they cut the deal with provides the FDIC 250K insurance coverage for the CDs. Here's some info on Vanguard SIPC and secondary insurance:
' under SIPC rules, IRAs have their own insurance that is separate from taxable accounts. And Roth IRAs are separate from Traditional IRAs.
If you have 2 IRAs at Vanguard (one Roth and one Traditional) and 2 taxable individual accounts, you would have a total of $1.5 million of insurance. The retirement accounts would have a total of $1 million of protection ($500,000 for the Roth, and another $500,000 for the Traditional), and the taxable accounts would have another $500,000 (but not $500,000 for each).
But if one of the taxable accounts is a joint account, it would have its own $500,000 limit, which would produce $1 million in total insurance for the taxable accounts.'
Vanguard does have an auxiliary insurance policy through Lloyd’s of London and London Company Insurers. It adds a second layer of protection to a brokerage account if, and only if, SIPC protection is exhausted.
The secondary insurance policy is good for up to $49.5 million per account. There is an aggregate maximum of $250 million. That means the insurance policy will shell out a quarter of a billion dollars at most across all accounts that have maxed out SIPC coverage.
Is Vanguard SIPC and FDIC Insured? (ira-reviews.com)