5 Best Brokerage Accounts for High Interest Rates: 4%+
Despite the recent Fed rate cuts, interest rates are still quite high. These brokers pay the best rates on uninvested cash.
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Interest rates are starting to drop.
However, there's still time for investors to capitalize on the opportunity to earn more interest from uninvested cash — as you'll see below, rates remain relatively high.
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.
Note: Interest rates below are accurate as of Dec. 20, 2024.
Why trust NerdWallet
Sign up for NerdWallet Advisors. Get a custom financial plan and unlimited access to a Certified Financial Planner™ for a low monthly fee.
Interest rates are starting to drop.
However, there's still time for investors to capitalize on the opportunity to earn more interest from uninvested cash — as you'll see below, rates remain relatively high.
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.
Note: Interest rates below are accurate as of Dec. 20, 2024.
You can still earn over 4% 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: 4%+
| Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
|---|---|---|---|---|---|
 Webull Learn more on Webull's website | $0 per trade | $0 | Get up to 40 free fractional shares ( each 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 | $0 per trade | $0 | None no promotion available at this time | Learn more on Vanguard's website | |
 Public Learn more on Public's website | $0 | $0 | Earn up to $10,000 when you transfer your investment portfolio to Public. | Learn more on Public's website | |
 Robinhood | $0 per trade | $0 | 1 Free Stock after linking your bank account (stock value range $5.00-$200) | Read review | |
 Fidelity | $0 per trade for online U.S. stocks and ETFs | $0 | None no promotion available at this time | Read review |
$0
per trade
$0
Get up to 40 free fractional shares ( each 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.
High interest rate on uninvested cash.
High order execution quality.
Cons
No mutual funds.
Separate app required to trade crypto.
Why We Like It
Clients can access Webull's cash management account, which pays a 4.00% APY (as of Dec. 20, 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 for stocks.
Why We Like It
Vanguard's default cash sweep fund is the Vanguard Federal Money Market Fund, which is currently yielding 5.08% (as of Dec. 19, 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.
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 4.1% (as of Dec. 20, 2024). Public also offers a Treasury Account with a 4.3% yield (as of Dec. 20, 2024). The account is SIPC-insured and invests in Treasury Bills.
$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 (3% for Gold members).
High interest rate on uninvested cash.
Cons
No mutual funds.
Little third-party research.
Why We Like It
Current 4.25% APY (as of Dec. 20, 2024) requires $5 a month Robinhood Gold subscription and carries FDIC insurance of up to $2 million.
$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 4.23% (as of Dec. 19, 2024).
Brokerage accounts vs. bank accounts for earning interest
While these brokers pay interest similar to what you'd receive in a savings account, there are a number of differences to be aware of, including deposit insurance and features.
Deposit insurance
Savings accounts are insured by the Federal Deposit Insurance Corp. (FDIC), which protects up to $250,000 per person, per bank.
All five brokerages above are members of the Securities Investor Protection Corp. (SIPC), which protects up to $500,000 per person (up to $250,000 in cash), per brokerage account in the event that the broker becomes insolvent.
However, SIPC coverage doesn't protect the value of money market funds, such as those that Fidelity and Vanguard sweep funds into by default. In other words, SIPC coverage doesn't necessarily cover the exact dollar amount of cash in a brokerage account the way FDIC coverage does in a savings account.
Is a brokerage account a good place to earn interest?
Bill Hampton, a financial consultant based in Atlanta, says that brokerage accounts can be good places to earn interest — for savers who don’t need immediate access to their money.
However, Hampton says that some brokerage accounts have limitations. “For instance, some do not offer the ability to write checks like a bank would. Some limit the amount of transactions you can make in a particular month,” Hampton says.
“A client would have to determine if it’s a long-term savings account that they’re not going to touch for six months or a year, or if it’s going to be an emergency fund that they don’t plan to utilize. If it’s going to be their regular account that they move cash in and out of, they may want to check with the restrictions that each brokerage firm has,” Hampton says.
He points out that many accounts are limited to six transactions per month, which is “plenty in most cases.”
Hampton says that despite these limitations, brokerage accounts can still be a viable option for savers who are seeking high yields and don’t need to touch their money several times a week.
“If individuals or clients can find better rates at a brokerage firm than at their local bank, which is most likely, then that’s a very good opportunity to earn a high interest rate,” he says.
Last updated on December 20, 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.
