6 Best Brokerage Accounts for High Interest Rates on Cash Sweep
Interest rates are the highest they've been in years, and these brokers pay the highest rates on uninvested cash.
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The Federal Reserve raised interest rates 11 times over the past few years, which put rates at a two-decade high. Rates have been held steady so far this year, but cuts are still expected in 2024. That means now is the time for investors to capitalize on the opportunity to earn 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 trust NerdWallet
The Federal Reserve raised interest rates 11 times over the past few years, which put rates at a two-decade high. Rates have been held steady so far this year, but cuts are still expected in 2024. That means now is the time for investors to capitalize on the opportunity to earn 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 trust NerdWallet
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 |
|---|---|---|---|---|---|
 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 |
 Webull Learn more on Webull's website | Best for Interest rate of 5% or more | $0 per trade | $0 | Get up to 75 free fractional shares (valued up to $3,000) when you open and fund an account with Webull. | Learn more on Webull's website |
 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 |
 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 |
 Public Learn more on Public's website | Best for Interest rate of 5% or more | $0 | $0 | Earn up to $10,000 when you transfer your investment portfolio to Public. | Learn more on Public's website |
 Fidelity | Best for Interest rate of 4% or more | $0 per trade for online U.S. stocks and ETFs | $0 | None no promotion available at this time | Read review |
Our pick 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)
Pros
Commission-free stock, options and ETF trades.
Streamlined interface.
Cryptocurrency trading.
IRA with 1% match.
High interest rate on uninvested cash.
Cons
No mutual funds.
Limited customer support.
Why We Like It
Current 5% APY (as of July 2, 2024) requires $5 a month Robinhood Gold subscription and carries FDIC insurance of up to $2 million.
$0
per trade
$0
Get up to 75 free fractional shares (valued up to $3,000)
when you open and fund an account with Webull.
Pros
Commission-free stock, options and ETF trades.
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 July 1, 2024).
$0
per trade
$0
None
no promotion available at this time
Pros
Commission-free stock, options and ETF trades.
Leader in low-cost mutual, index and exchange-traded funds.
High interest rate on uninvested cash.
High order execution quality.
Cons
Basic trading platform only.
Limited research and data.
No fractional shares.
Why We Like It
Vanguard's default cash sweep fund is the Vanguard Federal Money Market Fund, which is currently yielding 5.29% (as of July 1, 2024).
$0
$0
Earn up to $10,000
when you transfer your investment portfolio to Public.
Pros
Commission-free stock, options and ETF trades.
Rebates for trading options.
Impressive selection of alternative assets.
Easy-to-use signup and trading interface.
High interest rate on uninvested cash.
Cons
No mutual funds.
No margin trading.
Lack of tools (e.g. customizable investment screeners).
No IRA accounts.
Why We Like It
Users can opt into Public's high-yield cash account, which currently pays 5.1% (as of July 2, 2024). Public also offers a Treasury Account with a 5.3% yield (as of July 2, 2024). The account is SIPC-insured and invests in Treasury Bills.
Our pick for
Interest rate of 4% or more
Best Online Broker for Advanced Traders 2024
$0
per trade
$0
None
no promotion available at this time
Pros
Commission-free stock, options and ETF trades.
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.
Website can be difficult to navigate.
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 July 2, 2024).
$0
per trade for online U.S. stocks and ETFs
$0
None
no promotion available at this time
Pros
Commission-free stock, options and ETF 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 4.97% (as of July 1, 2024).
Last updated on July 2, 2024
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...
