TD Ameritrade 300

Best Brokerage Account Interest Rates on Cash Balance


Brokerage firms interest rates on sweep accounts: Fidelity, Charles Schwab, TD Ameritrade, Etrade, Vanguard, Capital One, Ally Invest, Scottrade, Merrill Edge and others.



This article is about interest rates brokerage firms pay customers on their uninvested cash balance. If you are looking for information on brokerage margin rates than go to this article.

Interest rates in the United States have been at the historic lows for a few years now. This is a result of the Federal Reserve policy to stimulate the economy by infusing huge amounts of money into financial system by making money cheap to borrow and very accessible. As a result of this policy, it's impossible to find a brokerage company that will yield more than 0.10% on clients' account uninvested cash balance. The days when investors' cash could earn a high yield without taking any risk are now long gone.


Brokerage Highest and Average Interest Rates


In the table below we are listing the highest rated online stock brokers along with their interest rates on cash balance as of 2017. As you see, most brokerage firms, both large and small, old and new, expensive and cheap, show remarkable solidarity by offering incredibly low, 0.01% interest rate on their customers FDIC insured cash. Federal Reserve's recent 0.25% interest hike had zero effect on brokerage firms interest rates.

The highest investment firm interest rate on FDIC insured cash is currently 0.10% and it is available at Capital One Investing. The average interest rate on brokerage account is 0.01%.


Getting More Value Out of Brokerage Account


The interest rates in all brokerage firm accounts are so low that customers are much more likely to get more value by switching to lower commission brokerages and saving on commissions and fees rather than transferring account to Capital One Investing and earning interest on their cash. We encourage consumers to shop around to find brokers with low commissions and fewer fees.


High Yield Alternatives to Brokerage Accounts


For investors who want to earn by today's standards the highest interest on their cash - up to 10% - and who could handle more risk, there is an interesting industry called peer-to-peer landing, and the leading company there is Lending Club.


Brokerage Account Interest Rates Table


Brokerage
Rating
Trading
Commissions
Interest
Rate
Broker
Review

Capital One Investing rating

Capital One Investing
Stocks, ETFs: $6.95

Mutual Funds: $19.95

Options: $6.95 plus
$0.75 per contract
0.10% Capital One Investing
Review
Ally Invest rating

Ally Invest
Stocks, ETFs: $4.95

Mutual Funds: $9.95

Options: $4.95 plus
$0.65 per contract
0.01% Ally Invest
Review
Optionshouse rating

Optionshouse
Stocks, ETFs: $4.95

Mutual Funds: $20

Options: $4.95 plus $0.50 per contract
0.01% Optionshouse
Review
Fidelity Investments rating

Fidelity
Stocks, ETFs: $4.95

Mutual Funds: $49.95 ($75 for some funds)

Options: $4.95 plus
$0.65 per contract
0.01% Fidelity
Review
Optionsxpress rating

Optionsxpress
Stocks, ETFs: $4.95

Mutual Funds: $9.95

Options: $4.95 plus $0.65 per contract
0.01% OptionsXpress
Review
TD Ameritrade rating

TD Ameritrade
Stocks, ETFs: $6.95

Mutual Funds: $49.99

Options: $6.95 plus
$0.75 per contract
0.01% TD Ameritrade
Review
Scottrade rating

Scottrade
Stocks, ETFs: $6.95

Mutual Funds: $17

Options: $6.95 plus
$0.70 per contract
0.01% Scottrade
Review
Charles Schwab rating

Charles Schwab
Stocks, ETFs: $4.95

Mutual Funds: $76 to buy
$0 to sell

Options: $4.95 plus
$0.65 per contract
0.01% Charles Schwab
Review
Wellstarde rating

Wellstrade
Stocks, ETFs: $5.95

Mutual Funds: $35

Options: $5.95 plus
$0.75 per contract
0.01% WellsTrade
Review
Etrade rating

E*trade
Stocks, ETFs: $6.95

Mutual Funds: $19.99

Options: $6.95 plus
$0.75 per contract
0.01% Etrade
Review

Updated on 2/8/2017.




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