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Brokerage Account Highest Interest Rates on Cash Balances


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 number 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 even 1.00% 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 2018. 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 hikes had zero effect on brokerage firms interest rates.

The highest investment firm interest rate on FDIC insured cash is currently 0.14% for accounts under $250,000 and it is available at Merrill Edge. Schwab has 0.11% rate and Capital One Investing yields 0.10% APR. The average interest rate on brokerage account is 0.04% APY.


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 Merrill Edge and earning interest on their cash. We encourage consumers to shop around to find brokers with low commissions and fewer fees.


Brokerage Account Interest Rates Table


Brokerage
Rating
Trading
Commissions
Interest
Rate
Review,
Sweeps

Merrill Edge rating

Merrill Edge

Stocks, ETFs: $6.95

Mutual Funds: $19.95

Options: $6.95 plus
$0.75 per contract
0.14% Merrill Edge
Review


Sweep options

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
0.11% Charles Schwab
Review


Sweep options

Fidelity Investments rating

Fidelity

Stocks, ETFs: $4.95

Mutual Funds: $49.95

Options: $4.95 plus
$0.65 per contract
0.07% Fidelity
Review


Sweep options

Wellstrade rating

Wellstrade

Stocks, ETFs: $5.95

Mutual Funds: $35

Options: $5.95 plus
$0.75 per contract
0.02% WellsTrade
Review


Sweep options

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


Sweep options

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


Sweep options

Scottrade rating

Scottrade

Stocks, ETFs: $6.95

Mutual Funds: $17

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


Sweep options

Etrade rating

E*trade

Stocks, ETFs: $6.95

Mutual Funds: $19.99

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


Sweep options

Firstrade rating

Firstrade

Stocks, ETFs: $2.95

Mutual Funds: $9.95

Options: $2.95 plus
$0.50 per contract
0.01% Firstrade
Review


Sweep options

Interactive Brokers rating

Interactive Brokers
Stocks, ETFs: $0.005 per share
with $1 minimum

Mutual Funds: $14.95

Options: $0.70 per contract
plus exchange fees
0% IB
Review

Vanguard rating

Vanguard

Stocks, ETFs: $7 - $20

Mutual Funds: $8 - $35

Options: $30 plus
$1.50 per contract
na Vanguard
Review


Sweep options