<PAGE> PAGE 1
000 A000000 06/30/98
000 C000000 0000889519
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 VANGUARD BALANCED INDEX FUND, INC.
001 B000000 811-7023
001 C000000 6106691000
002 A000000 100 VANGUARD BOULEVARD
002 B000000 MALVERN
002 C000000 PA
002 D010000 19355
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
010 A000001 THE VANGUARD GROUP, INC.
010 B000001 801-11953
010 C010001 MALVERN
010 C020001 PA
010 C030001 19355
012 A000001 THE VANGUARD GROUP, INC.
012 B000001 84-772
012 C010001 MALVERN
012 C020001 PA
012 C030001 19355
013 A000001 PRICE WATERHOUSE LLP
013 B010001 PHILADELPHIA
013 B020001 PA
013 B030001 19103
014 A000001 VANGUARD MARKETING CORPORATION
014 B000001 8-21570
015 A000001 CORESTATES BANK, N.A.
015 B000001 C
015 C010001 PHILADELPHIA
015 C020001 PA
015 C030001 19101
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 97
019 C000000 VANGUARDGR
020 A000001 BEAR, STEARNS & CO., INC.
020 B000001 13-3299429
020 C000001 30
<PAGE> PAGE 2
020 A000002 INSTINET CORP.
020 B000002 13-3443395
020 C000002 14
020 A000003 PAINEWEBBER INC.
020 B000003 13-2638166
020 C000003 1
020 A000004 INVESTMENT TECHNOLOGY GROUP, INC.
020 B000004 95-4339369
020 C000004 1
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 48
022 A000001 THE VANGUARD GROUP, INC./POOLED CASH ACCOUNT
022 B000001 23-1945930
022 C000001 224832
022 D000001 210523
022 A000002 DONALDSON, LUFKIN & JENRETTE SECURITIES CORP.
022 B000002 13-2741729
022 C000002 39211
022 D000002 51339
022 A000003 LEHMAN BROTHERS INC.
022 B000003 13-2518466
022 C000003 52698
022 D000003 27294
022 A000004 BEAR, STEARNS & CO., INC.
022 B000004 13-3299429
022 C000004 42258
022 D000004 8826
022 A000005 BARCLAYS DE ZOETE WEDD SECURITIES, INC.
022 B000005 13-3410233
022 C000005 22301
022 D000005 22039
022 A000006 GREENWICH CAPITAL MARKETS, INC.
022 B000006 13-3172275
022 C000006 32541
022 D000006 10053
022 A000007 PAINEWEBBER INC.
022 B000007 13-2638166
022 C000007 24702
022 D000007 0
022 A000008 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000008 13-5674085
022 C000008 15007
022 D000008 4736
022 A000009 UBS SECURITIES LLC
022 B000009 13-3873456
022 C000009 13778
<PAGE> PAGE 3
022 D000009 0
022 A000010 GOLDMAN SACHS & CO.
022 B000010 13-5108880
022 C000010 6159
022 D000010 5631
023 C000000 511077
023 D000000 353322
024 000000 Y
025 A000001 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
025 B000001 13-5674085
025 C000001 E
025 D000001 2334
025 A000002 LEHMAN BROTHERS INC.
025 B000002 13-2518466
025 C000002 E
025 D000002 656
025 A000003 BEAR, STEARNS & CO., INC.
025 B000003 13-3299429
025 C000003 E
025 D000003 499
025 A000004 DONALDSON, LUFKIN & JENRETTE SECURITIES CORP.
025 B000004 13-2741729
025 C000004 E
025 D000004 427
025 A000005 PAINEWEBBER INC.
025 B000005 13-2638166
025 C000005 E
025 D000005 424
025 A000006 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
025 B000006 13-5674085
025 C000006 D
025 D000006 5676
025 A000007 LEHMAN BROTHERS INC.
025 B000007 13-2518466
025 C000007 D
025 D000007 4663
025 A000008 PAINE WEBBER INC.
025 B000008 13-2638166
025 C000008 D
025 D000008 761
025 A000009 BEAR, STEARNS & CO., INC.
025 B000009 13-3299429
025 C000009 D
025 D000009 305
025 D000010 0
025 D000011 0
025 D000012 0
025 D000013 0
025 D000014 0
025 D000015 0
025 D000016 0
<PAGE> PAGE 4
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 50947
028 A020000 0
028 A030000 0
028 A040000 18675
028 B010000 46564
028 B020000 0
028 B030000 0
028 B040000 15340
028 C010000 51739
028 C020000 10899
028 C030000 0
028 C040000 20739
028 D010000 52267
028 D020000 0
028 D030000 0
028 D040000 19994
028 E010000 44029
028 E020000 0
028 E030000 0
028 E040000 15352
028 F010000 41646
028 F020000 8221
028 F030000 0
028 F040000 15422
028 G010000 287192
028 G020000 19120
028 G030000 0
028 G040000 105522
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
<PAGE> PAGE 5
038 000000 0
039 000000 Y
040 000000 N
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 N
048 000000 0.000
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 3000
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
<PAGE> PAGE 6
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 Y
067 000000 Y
068 A000000 N
068 B000000 N
069 000000 Y
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 Y
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 N
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 N
<PAGE> PAGE 7
070 M020000 N
070 N010000 Y
070 N020000 Y
070 O010000 Y
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 363785
071 B000000 152649
071 C000000 1385633
071 D000000 11
072 A000000 6
072 B000000 19547
072 C000000 5558
072 D000000 0
072 E000000 0
072 F000000 52
072 G000000 606
072 H000000 0
072 I000000 579
072 J000000 54
072 K000000 0
072 L000000 39
072 M000000 1
072 N000000 0
072 O000000 53
072 P000000 0
072 Q000000 0
072 R000000 4
072 S000000 0
072 T000000 202
072 U000000 0
072 V000000 4
072 W000000 0
072 X000000 1594
072 Y000000 0
072 Z000000 23511
072AA000000 9101
072BB000000 1848
072CC010000 112544
072CC020000 0
072DD010000 17106
072DD020000 0
072EE000000 3312
073 A010000 0.2000
073 A020000 0.0000
073 B000000 0.0400
<PAGE> PAGE 8
073 C000000 0.0000
074 A000000 0
074 B000000 68308
074 C000000 14623
074 D000000 605273
074 E000000 0
074 F000000 908735
074 G000000 0
074 H000000 0
074 I000000 301
074 J000000 2022
074 K000000 0
074 L000000 13749
074 M000000 0
074 N000000 1613011
074 O000000 13436
074 P000000 321
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 15188
074 S000000 0
074 T000000 1584066
074 U010000 89016
074 U020000 0
074 V010000 17.80
074 V020000 0.00
074 W000000 0.0000
074 X000000 48481
074 Y000000 1496
075 A000000 0
075 B000000 1433699
076 000000 0.00
077 A000000 N
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 C000000 300000
081 A000000 Y
081 B000000 108
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
<PAGE> PAGE 9
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE GARY P. SOURA
TITLE MANAGER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000889519
<NAME> VANGUARD BALANCED INDEX FUND, INC.
<MULTIPLIER> 1000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1191170
<INVESTMENTS-AT-VALUE> 1596939
<RECEIVABLES> 15771
<ASSETS-OTHER> 301
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1613011
<PAYABLE-FOR-SECURITIES> 13436
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 15509
<TOTAL-LIABILITIES> 28945
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1164803
<SHARES-COMMON-STOCK> 89016
<SHARES-COMMON-PRIOR> 77357
<ACCUMULATED-NII-CURRENT> 5651
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6624
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 406988
<NET-ASSETS> 1584066
<DIVIDEND-INCOME> 5558
<INTEREST-INCOME> 19547
<OTHER-INCOME> 0
<EXPENSES-NET> 1594
<NET-INVESTMENT-INCOME> 23511
<REALIZED-GAINS-CURRENT> 7253
<APPREC-INCREASE-CURRENT> 112544
<NET-CHANGE-FROM-OPS> 143308
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 17106
<DISTRIBUTIONS-OF-GAINS> 3312
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16551
<NUMBER-OF-SHARES-REDEEMED> 5979
<SHARES-REINVESTED> 1087
<NET-CHANGE-IN-ASSETS> 323680
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 2683
<OVERDISTRIB-NII-PRIOR> 754
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 52
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1594
<AVERAGE-NET-ASSETS> 1433699
<PER-SHARE-NAV-BEGIN> 16.29
<PER-SHARE-NII> 0.27
<PER-SHARE-GAIN-APPREC> 1.48
<PER-SHARE-DIVIDEND> 0.20
<PER-SHARE-DISTRIBUTIONS> 0.04
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.80
<EXPENSE-RATIO> 0.22
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>