TD Ameritrade 300

TD Ameritrade Cash Sweep Options (Brokerage Account Interest). TD Ameritrade Money Market Fund Rates in 2022

TD Ameritrade\thinkorswim uninvested cash sweep account options (FDIC bank, money market fund) vehicle choice. TD Ameritrade brokerage\IRA account APY interest rates, insurance, and fees.

TD Ameritrade Cash Sweep Account Options

If you have money sitting in your TD Ameritrade brokerage account, there are several cash sweep vehicles available to you. The first is an FDIC-insured bank option. This is the default set up. If you don’t make any requests to the broker, your free cash balances will be swept to a program bank that has FDIC insurance. Typically, this is the broker’s parent company, TD Bank.

TD Ameritrade Cash Sweep Interest Rates

TD Ameritrade receives compensation for sending its customers’ cash to TD Bank, which is probably why it’s the default option. The sweep program does pay interest, but currently it is only 0.01% for all balances (see other TDA cash sweep options below).

Open TD Ameritrade Account

Open TD Ameritrade Account

Other TD Ameritrade Cash Sweep Options

The second alternative also pays interest:

Dollar Range Interest Rate Annual Percentage Yield
$0.01 - $4,999.99 0.01% 0.01%
$5,000.00 - $24,999.99 0.01% 0.01%
$25,000.00 - $99,999.99 0.01% 0.01%
$100,000.00 - $199,999.99 0.01% 0.01%
$200,000.00 - $499,999.99 0.01% 0.01%
$500,000.00 - $999,999.99 0.01% 0.01%
$1,000,000 + 0.01% 0.01%

TD Ameritrade has a supplemental private insurance policy from London insurers that adds additional protection to brokerage accounts beyond FDIC and SIPC coverage. It provides $149.5 million of protection for securities and $2 million in insurance for cash. However, there is an aggregate limit on the policy of $500 million. It seems odd to have such a high limit per customer, but such a low total that the insurance company would pay.


Majority of brokerage firms offer very low interest on investors' uninvested cash. Fidelity's cash sweep rates, for example, are 0.01% too.

Ally Invest offers the highest in the industry rate of 0.6% APY on its online savings account that could easily be linked to its brokerage account.

M1 Finance offers a checking account that comes with 1.3% APY. However, that checking is part of the broker's M1 Plus program which costs $125 a year.

TD Ameritrade Money Market Fund Rates

The third and final option that TD Ameritrade offers its account holders is to move free cash balances to a money market mutual fund. These balances are insured neither by the FDIC, nor by SIPC, nor by anyone else; although SIPC does protect the number of shares. Money market funds attempt to maintain an NAV of $1 per share, but there have been failures in the past.

Currently, the default money market fund offered by TD Ameritrade is one managed by TD Asset Management USA Funds. It pays between 0.01% and 0.05%, depending on the balance tier.

TD Ameritrade Checking Account

TD Ameritrade Cash Sweep Insurance

TD Ameritrade’s default sweep option is insured up to $250,000. This is the standard amount of protection from the FDIC, but other brokerage firms offer programs to increase it. Fidelity, for example, uses multiple program banks, a method that provides $1,250,000 of insurance.

The second free cash option available to TD Ameritrade clients is simply to leave cash balances in the brokerage account. This alternative comes with SIPC protection, which includes insurance on cash up to $250,000. The maximum amount of SIPC coverage is $500,000, including all securities in an account.

TD Ameritrade Margin Rates

Debit Balance Margin Interest Rates
above $499,999 call 800-655-4777
$250,000 - $499,999 9.00%
$100,000 - $249,999 9.00%
$50,000 - $99,999 9.25%
$25,000 - $49,999 10.25%
$10,000 - $24,999 10.50%
under $10,000 11%

TD Ameritrade Cash Sweep Final Thoughts

TD Ameritrade allows its clients to change their cash sweep choice at any time. The process may require liquidation of cash positions, which could incur the loss of a day’s interest or dividends. Funds held in the money market deposit account can be liquidated to satisfy any debits. These can be presented either through a Visa debit card, checks, ACH, or other method.

Open TD Ameritrade Account

Open TD Ameritrade Account

TD Ameritrade Automatic Investing

Many investors are wondering if TD Ameritrade is offering automatic investment plan for stocks, mutual funds and ETFs. After all, automatic investment plan is the best way to dollar-cost-average one's investing without spending too much time on it. You just set it and forget it.

Well, the answer to that question in TD Ameritrade's case is "Yes". Customers can set up automatic investing at the brokerage house for mutual funds and ETFs.

When it comes to automatic investment fees it's a bit tricky. Customers pay regular commission on most ETFs ($0) and load mutual funds ($49.99). Investors can set up automatic investing WITH NO FEES on no-transaction-fee mutual funds, no-load mutual funds and on ETFs.

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TD Ameritrade's flagship software is thinkorswim, a desktop platform with some very advanced trading features. The charting capability of thinkorswim is higher than that of any of its rivals. The fact that TD Ameritrade doesn't impose any trading requirements or account minimums for this powerful software is incredible. All that makes TD Ameritrade the best online broker for charting tools.

thinkorswim Cash Sweep Account Options

Since thinkorswim is owned by TD Ameritrade, thinkorswim cash sweep vehicle options are the same as for regular TD Ameritrade account.

About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for, Chad can usually be found managing his portfolio or building a new home computer.