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:

  1. Signing up for account access on® and choosing electronic delivery of shareholder materials, including statements, confirmations, fund reports, and prospectuses.
  2. Consolidating your accounts or investing additional assets to bring all account balances in all funds to $10,000 or more.
  3. Maintaining total Vanguard mutual fund assets of $100,000 or more.

To learn more about Vanguard’s new fee policy, please click here.



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