5 Best Brokerage Accounts for High Interest Rates on Cash Sweep
Interest rates are the highest they've been in two decades, and these brokers pay the highest rates on uninvested cash.
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The Federal Reserve has raised interest rates 11 times over the past two years, which puts rates at a two-decade high. That means banking products like savings accounts and CDs are paying more, but it also means investors can demand more interest from uninvested cash. (Uninvested cash can wind up in your brokerage account for a variety of reasons — it can be cash deposits you simply haven't used to purchase investments yet, or dividend payments that weren't reinvested automatically.)
Interest on uninvested cash is often referred to as a "cash sweep," which is just what it sounds like — some brokers sweep your cash into high-yield options. The key word is "some" — many do not, which typically means they're earning interest on your cash rather than passing it along to you.
In NerdWallet's analysis, the below brokers offered the highest APYs or yields on idle cash.
Why you can trust NerdWallet's picks: Our writers and editors together have more than 50 years of experience writing about finance, and follow strict guidelines to maintain editorial integrity. We do a deep, independent analysis of dozens of investment firms, sorting through the details to find and evaluate the information investors want when choosing an investing account. To see our full methodology and learn more about our process, read our criteria for evaluating online brokers.
The Federal Reserve has raised interest rates 11 times over the past two years, which puts rates at a two-decade high. That means banking products like savings accounts and CDs are paying more, but it also means investors can demand more interest from uninvested cash. (Uninvested cash can wind up in your brokerage account for a variety of reasons — it can be cash deposits you simply haven't used to purchase investments yet, or dividend payments that weren't reinvested automatically.)
Interest on uninvested cash is often referred to as a "cash sweep," which is just what it sounds like — some brokers sweep your cash into high-yield options. The key word is "some" — many do not, which typically means they're earning interest on your cash rather than passing it along to you.
In NerdWallet's analysis, the below brokers offered the highest APYs or yields on idle cash.
Why you can trust NerdWallet's picks: Our writers and editors together have more than 50 years of experience writing about finance, and follow strict guidelines to maintain editorial integrity. We do a deep, independent analysis of dozens of investment firms, sorting through the details to find and evaluate the information investors want when choosing an investing account. To see our full methodology and learn more about our process, read our criteria for evaluating online brokers.
You can earn 5% or more on uninvested cash in your brokerage account. But to do so, you have to choose a broker with a high cash sweep rate, like those listed here.
Best Brokerage Accounts for High Interest Rates on Cash Sweep
| Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
|---|---|---|---|---|---|
 Vanguard Learn more on Vanguard's website | Best for Interest rate of 5% or more | $0 per trade | $0 | None no promotion available at this time | Learn more on Vanguard's website |
 Fidelity Learn more on Fidelity's website | Best for Interest rate of 5% or more | $0 per trade for online U.S. stocks and ETFs | $0 | None no promotion available at this time | Learn more on Fidelity's website |
 Webull Learn more on Webull's website | Best for Interest rate of 5% or more | $0 per trade | $0 | Get up to 12 free fractional shares (valued up to $3,000) when you open and fund an account with Webull. | Learn more on Webull's website |
 Robinhood Learn more on Robinhood's website | Best for Interest rate of 5% or more | $0 per trade | $0 | 1 Free Stock after linking your bank account (stock value range $5.00-$200) | Learn more on Robinhood's website |
 Interactive Brokers IBKR Lite Learn more on Interactive Brokers' website | Best for Interest rate of 4% or more | $0 per trade | $0 | None no promotion available at this time | Learn more on Interactive Brokers' website |
Our pick for
Interest rate of 5% or more
$0
per trade
$0
None
no promotion available at this time
Pros
Large mutual fund selection.
Commission-free stock, options and ETF trades.
Leader in low-cost funds.
High interest rate on uninvested cash.
High order execution quality.
Cons
Basic trading platform only.
Limited research and data.
Why We Like It
Vanguard's default cash sweep fund is the Vanguard Federal Money Market Fund, which is currently yielding 5.30% (as of Dec. 1, 2023).
$0
per trade for online U.S. stocks and ETFs
$0
None
no promotion available at this time
Pros
Commission-free stock, ETF and options trades.
Large selection of research providers.
Strong customer service.
Expense-ratio-free index funds.
Highly rated mobile app.
High interest rate on uninvested cash.
Cons
Relatively high broker-assisted trade fee.
Why We Like It
Fidelity automatically sweeps uninvested cash into high-interest funds, which saves investors a step. One option, the Fidelity Government Money Market Fund, has a 7-day yield of 5% (as of Nov. 30, 2023).
$0
per trade
$0
Get up to 12 free fractional shares (valued up to $3,000)
when you open and fund an account with Webull.
Pros
Low costs.
Easy-to-use platform.
Advanced tools.
Access to cryptocurrency.
High interest rate on uninvested cash.
High order execution quality.
Cons
No mutual funds.
Thin educational support.
Why We Like It
Clients can access Webull's cash management account, which pays a 5.0% APY (as of Dec. 1, 2023). IRA accounts are not eligible.
$0
per trade
$0
1 Free Stock
after linking your bank account (stock value range $5.00-$200)
Pros
No account minimum.
Streamlined interface.
Cryptocurrency trading.
IRA with 1% match.
High interest rate on uninvested cash.
Cons
No mutual funds or individual bonds.
Limited customer support.
Why We Like It
Current 5% APY (as of Dec. 1, 2023) requires $5 a month Robinhood Gold subscription and carries FDIC insurance of up to $2 million.
Our pick for
Interest rate of 4% or more
$0
per trade
$0
None
no promotion available at this time
Pros
Large investment selection.
Strong research and tools.
Over 19,000 no-transaction-fee mutual funds.
High order execution quality.
Cons
High minimum to earn interest on uninvested cash.
Why We Like It
Interactive Brokers offers two different plans — IBKR Lite and IBKR Pro. No interest is paid on balances below $10,000, but on amounts above that, Lite clients earn 3.83% and Pro clients earn 4.83% (as of Dec. 1, 2023).
Last updated on December 1, 2023
Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokerage firms by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars).
For more details about the categories considered when rating brokers and our process, read our full methodology.
To recap our selections...
NerdWallet's Best Brokerage Accounts for High Interest Rates on Cash Sweep
- Vanguard: Best for Interest rate of 5% or more
- Fidelity: Best for Interest rate of 5% or more
- Webull: Best for Interest rate of 5% or more
- Robinhood: Best for Interest rate of 5% or more
- Interactive Brokers IBKR Lite: Best for Interest rate of 4% or more
