Sweep accounts provide a simple way to put idle cash to work. Investors who already have brokerage or retirement accounts can use sweep accounts to generate small returns on cash that would otherwise sit unused. If you’re looking to optimize every part of your portfolio, a sweep account could be an ideal way to make the most of uninvested cash.
What is a cash sweep account?
A cash sweep account is an automated feature offered by banks and brokerages to move uninvested cash into an interest-bearing account, such as a money market fund or a bank deposit account.
This process, which often happens at the close of each business day, ensures that your idle cash earns a return without any manual input required. By sweeping funds into a safe, interest-bearing vehicle, these accounts help you make the most of your cash reserves while keeping them easily accessible for future investments.
Which brokerages offer sweep accounts?
Many brokerages offer sweep accounts, each with unique features and benefits tailored to different types of investors. Here are some of the best sweep account providers, each known for specific advantages.
Robinhood's sweep account stands out for its seamless integration with the platform's popular trading app, making it easy for investors to maximize returns on uninvested cash without leaving the app.
Robinhood offers a competitive annual percentage yield (APY) at 4.25% and convenient access, especially appealing to investors prioritizing flexibility and minimal fees. FDIC coverage of up to $2.5 million is included, but sweep features are limited to Robinhood Gold members, which costs $5 monthly.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Get a free stock
Robinhood's sweep account stands out for its seamless integration with the platform's popular trading app, making it easy for investors to maximize returns on uninvested cash without leaving the app.
Robinhood offers a competitive annual percentage yield (APY) at 4.25% and convenient access, especially appealing to investors prioritizing flexibility and minimal fees. FDIC coverage of up to $2.5 million is included, but sweep features are limited to Robinhood Gold members, which costs $5 monthly.
Pros
High APY. Offers one of the more competitive interest rates among brokerages, helping to grow uninvested cash faster than traditional savings accounts.
Fee-free structure. Robinhood's sweep account has no monthly fees or maintenance costs, allowing all returns to go straight into your account.
Integrated with trading platform. Since the sweep account is built into the Robinhood app, it's easy to manage funds alongside your investments with no need for transfers.
Cons
Limited cash sweep options. Robinhood's platform lacks the variety of cash sweep choices offered by more established brokerages, restricting investors to a single type of cash account without options for higher-yield alternatives.
Variable interest rates. Interest rates can fluctuate, so returns may vary based on market conditions and Robinhood's own adjustments.
Membership required. Sweep features are available only to Robinhood Gold members, who must pay a $5 monthly fee.
Ideal for investors looking for flexibility, eToro's sweep account provides access to a wide range of investment options, including cryptocurrencies and stocks.
This feature makes it an attractive choice for those wanting to keep uninvested cash readily available for both traditional and alternative assets.
At a 4.55% APY, eToro's rate is competitive, while FDIC insurance covers up to $5 million. Unfortunately, the 4.55 APY requires an account balance of $250,000 — while investors with $10,000 or less only earn 1.25% interest.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
FINDER EXCLUSIVE: Get a guaranteed $15 bonus and $10 in free crypto
Ideal for investors looking for flexibility, eToro's sweep account provides access to a wide range of investment options, including cryptocurrencies and stocks.
This feature makes it an attractive choice for those wanting to keep uninvested cash readily available for both traditional and alternative assets.
At a 4.55% APY, eToro's rate is competitive, while FDIC insurance covers up to $5 million. Unfortunately, the 4.55 APY requires an account balance of $250,000 — while investors with $10,000 or less only earn 1.25% interest.
Pros
Diverse investment options. eToro's platform allows for easy access to cryptocurrencies, stocks, exchange-traded funds (ETFs) and more, making it simple to deploy your cash sweep balance across multiple asset classes.
Global access. With a focus on international markets, eToro is ideal for investors interested in diversifying across borders and industries.
No account minimums. eToro's sweep account has no minimum balance requirement, allowing investors at all levels to take advantage of the service.
Cons
Fees on certain transactions. Some transactions, particularly involving cryptocurrencies, may incur fees, potentially cutting into returns.
Limited banking features. While great for investing, eToro's sweep account lacks some traditional banking features, which may limit its usefulness for those wanting a more versatile account.
Available asset types
Stocks, Options, ETFs, Cryptocurrency
Account types
Brokerage, IRA
Annual fee
$0 per month
Minimum deposit
$0
Signup bonus
FINDER EXCLUSIVE: Get a guaranteed $15 bonus and $10 in free crypto
Cash sweep APY
4.9%
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
FINDER EXCLUSIVE: Get a guaranteed $15 bonus and $10 in free crypto
Interactive Brokers offers a highly flexible sweep account ideal for experienced investors who prioritize low fees and a robust platform with extensive global market access.
Known for its sophisticated tools and low margin rates, Interactive Brokers is well-suited for active traders seeking an efficient cash management solution. Clients who opt for IBKR Pro membership get access to a 4.33% APY, while IBKR Lite subscribers get a lower 3.33% rate.
Only IBKR Pro users are afforded $2.5 million in FDIC insurance, and no interest is earned on the first $10,000 in a user's account.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
N/A
Interactive Brokers offers a highly flexible sweep account ideal for experienced investors who prioritize low fees and a robust platform with extensive global market access.
Known for its sophisticated tools and low margin rates, Interactive Brokers is well-suited for active traders seeking an efficient cash management solution. Clients who opt for IBKR Pro membership get access to a 4.33% APY, while IBKR Lite subscribers get a lower 3.33% rate.
Only IBKR Pro users are afforded $2.5 million in FDIC insurance, and no interest is earned on the first $10,000 in a user's account.
Pros
Extensive global access. Investors can access a wide range of global markets, making it easy to allocate funds across various regions and asset types.
Low margin rates. Interactive Brokers offers some of the lowest margin rates available, allowing investors to leverage their funds efficiently.
Advanced trading tools. The platform provides sophisticated tools and analytics, which are helpful for seasoned investors looking to optimize their portfolios.
Cons
Complex interface. Interactive Brokers' platform can be overwhelming for beginners, given its extensive features and technical layout.
Monthly inactivity fees. Accounts with low activity may incur monthly fees, which can diminish returns for less active investors.
High minimums for certain accounts. Some accounts require higher minimum balances, making them less accessible for new investors or those with limited funds.
Wealthfront's sweep account is particularly appealing to investors seeking a high-yield, automated cash management solution with easy access to goal-based investing tools. Clients get access to a 4.25% APY and up to $8 million in FDIC insurance, although a minimum deposit of $500 is required to open an account, and a 0.25% annual maintenance fee is charged.
As a robo-advisor, Wealthfront combines cash management with personalized investment portfolios, making it ideal for hands-off investors.
Stock trade fee
$0
Minimum deposit
$500
Signup bonus
Get $50
Wealthfront's sweep account is particularly appealing to investors seeking a high-yield, automated cash management solution with easy access to goal-based investing tools. Clients get access to a 4.25% APY and up to $8 million in FDIC insurance, although a minimum deposit of $500 is required to open an account, and a 0.25% annual maintenance fee is charged.
As a robo-advisor, Wealthfront combines cash management with personalized investment portfolios, making it ideal for hands-off investors.
Pros
High APY for uninvested cash. Wealthfront offers a competitive interest rate on uninvested cash, helping funds grow without the need for active management.
Automated goal-based investing. The platform allows you to set financial goals and automatically invest toward them, providing a more tailored experience for those who prefer a hands-off approach.
No fees on cash management account. Wealthfront's cash account has no monthly fees, making it cost-effective for those focused on low-cost growth.
Cons
Limited to US residents. Wealthfront is only available to US-based clients, limiting its accessibility to international investors.
Less flexibility in investments. As a robo-advisor, Wealthfront may not offer the same level of control or customization as a traditional brokerage platform.
Moomoo's sweep account is designed for active traders who value real-time data and in-depth market analysis. This platform is particularly attractive to those who prioritize low fees and access to advanced trading tools, making it a solid choice for day traders and other frequent investors.
The brokerage offers a 4.35% APY with $1 million in FDIC insurance at select banks. Additionally, customers who qualify according to certain conditions can get access to an 8.1% APY for a limited period of three months.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Get up to 15 free stocks
Moomoo's sweep account is designed for active traders who value real-time data and in-depth market analysis. This platform is particularly attractive to those who prioritize low fees and access to advanced trading tools, making it a solid choice for day traders and other frequent investors.
The brokerage offers a 4.35% APY with $1 million in FDIC insurance at select banks. Additionally, customers who qualify according to certain conditions can get access to an 8.1% APY for a limited period of three months.
Pros
Advanced trading tools and analytics. Moomoo offers extensive charting tools, live market data, and in-depth analytics, making it ideal for active traders seeking detailed insights.
No commission fees. Moomoo's platform provides commission-free trading, allowing investors to maximize returns by minimizing transaction costs.
Real-time market data. Moomoo delivers real-time data for US, Hong Kong, and Chinese markets, giving traders up-to-the-minute insights across global markets.
Cons
Limited account types. Moomoo primarily focuses on individual brokerage accounts, so it may lack options for investors looking for retirement or specialty accounts.
Geared toward active traders. With tools designed for high-frequency trading, Moomoo may be overwhelming for beginners or those seeking a simple cash management solution.
Earn up to 40 fractional shares and an extra 2% APY for 30 days when you open an account and make an initial deposit of the qualified amount. T&C apply.
Webull's sweep account is tailored for tech-savvy investors who appreciate a user-friendly platform with strong research tools and commission-free trades.
Known for its intuitive interface, Webull makes cash management accessible for both new and experienced investors, especially those looking to optimize uninvested funds without complex fees. Webull users can earn 4.25% APY on uninvested cash, with $1.5 million in FDIC
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Earn up to 40 fractional shares and an extra 2% APY for 30 days
Webull's sweep account is tailored for tech-savvy investors who appreciate a user-friendly platform with strong research tools and commission-free trades.
Known for its intuitive interface, Webull makes cash management accessible for both new and experienced investors, especially those looking to optimize uninvested funds without complex fees. Webull users can earn 4.25% APY on uninvested cash, with $1.5 million in FDIC
Pros
User-friendly platform. Webull's interface is intuitive, with easy navigation and interactive charts that make it accessible even for less-experienced investors.
Commission-free trading. With no commission fees, Webull allows investors to execute trades cost-effectively, maximizing potential returns on all account activities.
Extended hours trading. Webull offers extended trading hours, allowing investors to trade pre-market and after-hours, adding flexibility for those managing cash sweep balances.
Cons
Lacks in-depth analysis tools. Although Webull provides strong basic research tools, it may lack some of the advanced analytics that more seasoned traders might seek.
Limited account options. Webull mainly offers individual brokerage accounts, so investors needing more specialized accounts, such as retirement options, may find it restrictive.
Available asset types
Stocks, Options, ETFs, Cryptocurrency
Account types
Brokerage, IRA
Annual fee
$0 per month
Minimum deposit
$0
Signup bonus
Earn up to 40 fractional shares and an extra 2% APY for 30 days
Cash sweep APY
4.25%
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Earn up to 40 fractional shares and an extra 2% APY for 30 days
Betterment's sweep account is perfect for those looking for a streamlined, automated approach to cash management with a focus on financial goals.
Known for its goal-based investment philosophy, Betterment is an ideal choice for passive investors who want a high-yield cash management solution integrated with a robo-advisor. Customers can earn up to 4.25% APY with $2 million in FDIC insurance.
Stock trade fee
$0
Minimum deposit
$10
Signup bonus
N/A
Betterment's sweep account is perfect for those looking for a streamlined, automated approach to cash management with a focus on financial goals.
Known for its goal-based investment philosophy, Betterment is an ideal choice for passive investors who want a high-yield cash management solution integrated with a robo-advisor. Customers can earn up to 4.25% APY with $2 million in FDIC insurance.
Pros
Goal-based investing options. Betterment helps users set specific financial goals and automatically invests towards them, making it easy for hands-off investors to stay on track.
Competitive APY. Betterment's cash account offers a strong APY, allowing your idle cash to earn more than traditional savings accounts.
Low management fees. Betterment keeps fees minimal for its cash management and robo-advisory services, which helps maximize long-term returns.
Cons
Limited investment customization. As a robo-advisor, Betterment's automated approach may lack flexibility for investors who prefer hands-on control over their portfolio choices.
Limited to US clients. Betterment is only available to US-based investors, which may be a drawback for international clients seeking a cash management solution.
Available asset types
ETFs, Cryptocurrency
Account types
Brokerage, IRA
Annual fee
0.25% on balances up to $99,999 0.4% on balances of $100,000+
Charles Schwab's sweep account is a strong option for investors looking for a comprehensive brokerage. Known for its extensive account offerings and wide range of tradable assets, Schwab provides flexibility for all types of investors, including those with retirement accounts or high cash balances. Unfortunately, the brokerage only offers a 0.10% APY — far below most competitors.
Stock trade fee
$0
Minimum deposit
$0
Signup bonus
Get a $101 bonus
Charles Schwab's sweep account is a strong option for investors looking for a comprehensive brokerage. Known for its extensive account offerings and wide range of tradable assets, Schwab provides flexibility for all types of investors, including those with retirement accounts or high cash balances. Unfortunately, the brokerage only offers a 0.10% APY — far below most competitors.
Pros
Wide range of account types. Charles Schwab offers a variety of accounts, including retirement, brokerage, and specialty accounts, making it versatile for different financial goals.
FDIC-insured sweep options. Schwab's sweep accounts are FDIC-insured up to federal limits, adding an extra layer of security for your funds.
Educational resources and personalized guidance for beginners.
Cons
Fees for some accounts and services. Certain accounts may incur fees, particularly if they don't meet minimum balance requirements, which can reduce overall returns.
Lower APY for smaller balances. Schwab's APY may be lower for accounts with smaller balances, which may not be ideal for those looking to maximize interest on minimal funds.
Opening a sweep account is straightforward, especially if you already have an existing brokerage account with a provider that offers this feature. Here’s a step-by-step guide to help you set it up:
Go to the provider’s website. Start by visiting the website of your chosen bank or brokerage that offers sweep accounts.
Select the type of account. Navigate to the cash management or sweep account section, and choose the specific account type that fits your needs (e.g., individual brokerage, retirement, or other eligible accounts).
Complete the application process. Fill out any necessary forms, provide required identification, and link your bank or brokerage account.
Activate the sweep feature. Once your account is open, enable the cash sweep option. Some platforms automatically enable this, while others may require you to toggle it on in your account settings.
Review terms and confirm settings. Make sure you understand any fees, minimum balance requirements, or interest rates associated with the sweep account, then confirm your settings to complete the setup.
Compare the best brokerage account cash sweep rates
Broker
Cash sweep APY
Robinhood
Up to 4.25%
eToro
Up to 4.55%
Moomoo
Up to 8.1%
Webull
4.25%
Interactive Brokers
Up to 4.33%
Wealthfront
4.25%
Betterment
4.25%
Charles Schwab
0.10%
Benefits of a sweep account
A sweep account offers several advantages, allowing investors to maximize returns on idle cash while keeping it accessible. Here are some key benefits:
Requires minimal oversight. Once set up, a sweep account automatically transfers uninvested cash into an interest-bearing account, so you don’t need to manage the process manually.
Managing risk. Sweep accounts provide a secure place to park funds after selling higher-risk investments, offering a buffer during volatile market periods.
Easy liquidity. Funds in sweep accounts remain easily accessible, allowing you to quickly reinvest or withdraw when needed.
Potential for higher returns. Many sweep accounts offer higher APYs than traditional checking or savings accounts, helping your cash grow while it’s not actively invested.
What to watch out for
While sweep accounts offer convenience, there are some potential downsides to consider:
Fees eating into profits. Some sweep accounts have monthly maintenance fees, which can reduce returns. Certain brokerages may also charge fees based on a percentage of your average daily balance.
Returns may vary. Interest rates on sweep accounts can fluctuate with market conditions, and some accounts offer relatively low APYs, which may not yield significant returns compared to other investment options.
Limited investment growth. While sweep accounts provide a small return on uninvested cash, they’re not designed for high growth. Investors looking for significant returns might find more benefit in traditional investments.
Restrictions on access. Some sweep accounts have minimum balance requirements or may limit access to certain account types, which can restrict flexibility.
Bottom line
Sweep accounts provide a smart, hands-off way for investors to earn modest returns on idle cash while keeping it ready for future investments.
With the right provider, you can optimize your uninvested funds without ongoing effort. Compare providers based on interest rates, fees and account features to find the sweep account that best supports your financial goals, and start putting your cash to work today.
Frequently asked questions
What do I do with uninvested cash in my brokerage account?
Uninvested cash in a brokerage account typically sits idle and doesn’t earn any returns unless moved to an interest-bearing account. Many investors choose to activate a cash sweep account, which automatically transfers idle cash into a high-yield account or money market fund to earn interest.
Alternatively, you could consider short-term investment options like Treasury bills or money market funds outside your brokerage, depending on your financial goals.
Where is the best place to put uninvested cash?
The best place for uninvested cash depends on your priorities. Sweep accounts are ideal if you want your funds to remain accessible for trading or immediate investments while earning modest interest.
For higher yields, high-yield savings accounts or money market accounts can offer better returns, although they may have some access limitations. If you’re open to slightly more risk, low-volatility investments like bonds or short-term CDs could provide higher returns with reasonable liquidity.
Shane's career started with the US Department of Defense where he performed research for 8 years. He then studied philosophy and became fascinated by the ways in which technology and finance can consolidate to impact the world's socio-economic order. To date, he has written hundreds of articles with various insights into digital assets, trading, investing, and the ways in which technology can be used to further optimize the stock trading and settlement processes. His work has been featured in Yahoo Finance, Nasdaq, Bitcoin Magazine, Investing.com, Tokenist, and others. See full bio
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