Best Cash Sweep Programs: How They Work and Which Ones Actually Save You Money

When you hold cash in a brokerage account, it doesn’t just sit there earning nothing—unless you’re using a cash sweep program, a system that automatically moves uninvested cash into interest-bearing accounts. Also known as cash management accounts, these programs are built into most online brokers and can turn your idle money into something that actually grows. If you’ve ever wondered why your $5,000 sitting in your trading account isn’t making any interest, this is why: without a sweep, it’s just cash. With one, it’s working for you.

Most money market funds, low-risk mutual funds that invest in short-term government and corporate debt are the default destination for swept cash. These aren’t FDIC-insured like bank accounts, but they’re among the safest investments you can hold. Some brokers now partner with banks to offer high-yield savings, bank accounts with interest rates far above the national average instead. The difference? One gives you fund returns tied to short-term rates, the other gives you actual bank deposit insurance up to $250,000 per institution. Both pay more than zero—but not all programs are created equal. Some sweep to funds with fees that eat into returns. Others route cash to institutions that offer rock-bottom yields, even when better options exist.

It’s not just about the rate. It’s about speed, stability, and access. A good sweep should move your cash instantly when you buy or sell. It shouldn’t delay trades or cause odd settlement hiccups. And it should be transparent—no fine print hiding behind terms like "variable rate" or "subject to change." You need to know what you’re getting before you invest. Fidelity, Schwab, and SoFi all offer different sweep options, and their performance varies based on market conditions. In 2024, some swept cash earned over 5% annual interest. Others barely cracked 1%. That’s not a small difference—it’s hundreds of dollars a year on a $10,000 balance.

Why does this matter for global investors? Because if you’re buying international stocks or ETFs, your cash is likely sitting in a U.S.-based account. You’re not just losing out on interest—you’re losing out on compounding. Even small returns add up over time, especially when you’re reinvesting dividends or dollar-cost averaging into foreign markets. The right sweep program doesn’t just protect your capital—it helps it grow while you wait for the next opportunity.

Below, you’ll find real-world breakdowns of how these programs work, what brokers offer, and which ones actually deliver value—not just marketing. You’ll see how fees, interest rates, and liquidity rules affect your bottom line. No fluff. Just what you need to know to make sure your cash isn’t sleeping on the job.