diff --git a/index.js b/index.js
index 5f92493b..f964680e 100644
--- a/index.js
+++ b/index.js
@@ -80,7 +80,7 @@ class KeyringController extends EventEmitter {
   async createNewVaultAndKeychain(password) {
     await this.createFirstKeyTree(password);
     await this.persistAllKeyrings(password);
-    this.setUnlocked.bind();
+    this.setUnlocked();
     this.fullUpdate();
   }
 
diff --git a/test/index.js b/test/index.js
index 35d8000e..775fd9ba 100644
--- a/test/index.js
+++ b/test/index.js
@@ -85,7 +85,7 @@ describe('KeyringController', function () {
   });
 
   describe('createNewVaultAndKeychain', function () {
-    it('should set a vault on the configManager', async function () {
+    it('should create a new vault', async function () {
       keyringController.store.updateState({ vault: null });
       assert(!keyringController.store.getState().vault, 'no previous vault');
 
@@ -95,6 +95,15 @@ describe('KeyringController', function () {
       expect(vault).toBeTruthy();
     });
 
+    it('should unlock the vault', async function () {
+      keyringController.store.updateState({ vault: null });
+      assert(!keyringController.store.getState().vault, 'no previous vault');
+
+      await keyringController.createNewVaultAndKeychain(password);
+      const { isUnlocked } = keyringController.memStore.getState();
+      expect(isUnlocked).toBe(true);
+    });
+
     it('should encrypt keyrings with the correct password each time they are persisted', async function () {
       keyringController.store.updateState({ vault: null });
       assert(!keyringController.store.getState().vault, 'no previous vault');