Brokerage Cash Sweep
The default rate applied to uninvested cash sitting in a brokerage account. Most brokerages default to extremely low rates (0.01–0.50%), quietly siphoning yield from idle capital.
Rate Summary — as of
Typical APY range
0.01–4.50%
Typical minimum balance
None
What Is a Brokerage Cash Sweep?
The default rate applied to uninvested cash sitting in a brokerage account. Most brokerages default to extremely low rates (0.01–0.50%), quietly siphoning yield from idle capital.
Key Features
- Automatic — cash sweeps without action
- Some brokerages now offer FDIC-insured sweep programs
- Can be replaced with money market funds at higher yield
What to Watch Out For
- Default rates are often negligible (0.01–0.45%)
- SIPC covers up to $250,000 in cash — NOT FDIC insurance
- Moving off the default sweep may require manual action
Who This Product Fits
Retiree on Fixed Income
Drawing income from deposits. Prioritises rate predictability, CD ladders, and FDIC/NCUA coverage across multiple institutions.
High-Net-Worth Depositor
Managing cash positions exceeding $250,000. Requires strategies for FDIC coverage beyond the single-institution limit: CD ladders across banks, CDARS networks, and brokered CDs.
Compare by Bank Type
The same Cash Sweep product type varies significantly by institution. Select a bank category to see how rates, fees, and features differ:
Big-Four Banks
Chase, Bank of America, Wells Fargo, and Citibank. Unmatched branch network; rates typically 0.01–1.…
Regional Banks
Mid-size institutions (Regions, Huntington, Fifth Third, KeyBank). Often competitive CDs; savings ra…
Online-Only Banks
Ally, Marcus, Discover Bank, American Express Bank. Consistently lead rate tables by 1–3 percentage …
Credit Unions
Member-owned cooperatives insured by NCUA. Share rates often match or beat online banks; membership …
Fintech Neobanks
SoFi, Wealthfront Cash, Betterment Cash Reserve. Pass-through deposit models; rates competitive but …
Brokerage Banks
Fidelity, Charles Schwab, Vanguard banking arms. Sweep rates are often low on default; money market …
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