Vanguard changes their fee schedule
April 27, 2007
Vanguard has eliminated several account related fees and replaced them with a single account service fee, effective April 26, 2007.
Here’s a summary of the changes:
The following annual $10 account-related fees have been eliminated:
- The custodial fee on traditional IRAs, Roth IRAs, and SEP–IRAs with a balance of less than $5,000.
- The maintenance fee on index fund accounts with a balance of less than $10,000.
- The custodial fee on education savings accounts (ESAs) with a balance of less than $5,000.
- The low-balance fee on all nonretirement accounts with a balance of less than $2,500.
These fees have been replaced with a single account service fee. This $20 fee will be charged annually for each Vanguard® fund in which you have a balance under $10,000 in an account.
The annual account service fee can be avoided by:
- Signing up for account access on Vanguard.com® and choosing electronic delivery of shareholder materials, including statements, confirmations, fund reports, and prospectuses.
- Consolidating your accounts or investing additional assets to bring all account balances in all funds to $10,000 or more.
- Maintaining total Vanguard mutual fund assets of $100,000 or more.
To learn more about Vanguard’s new fee policy, please click here.
Tags: investment fees