![]() ![]() The way it works is that you put money into your primary account, and the bank will automatically transfer the money into a different account where it will collect higher interest. I started a sweep account several years ago, and I was not familiar with the practice at that time. My guess is that with the advent of the internet, electronic deposits make this process almost cost-free. Maybe most importantly, will I be charged anything for this service. For anyone who has had experience with this type of account, what should I look for from my bank? Are there certain questions I should ask about having the money transferred? ![]() All rights reserved.I am looking to start a cash sweep account with my bank. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. TD Ameritrade, Inc., member FINRA/ SIPC, a subsidiary of The Charles Schwab Corporation. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. Rate changes may vary by program, location, or arrangement. In accordance with the Client Agreement, TD Ameritrade may change the tiers and rates at its discretion and without notice and the same rate may apply to more than one tier. Interest is accrued daily based on the interest rate tier applicable to each day’s balance and is credited monthly on the last business day. The previous day’s closing balance determines eligibility for a particular tier each day. Interest rates paid on balances in the IDA and TD Ameritrade Cash are based on tiers. The IDA rate applicable to your account will appear on your Positions page under Cash and Cash Alternatives. #Cash and sweep vehicle plusIf account value falls below $1 million during any monthly sweep period, thereafter, TD Ameritrade in its sole discretion, may stop paying the Plus IDA rate. Clients who meet this threshold for three consecutive business days within any monthly “sweep period” become eligible for the Plus IDA rate at the beginning of the next sweep period, and remain eligible for the subsequent 12 month period. **The Plus IDA rate is available for TD Ameritrade clients with $1 million or more in account value. To learn more about FDIC coverage go to Non-Deposit Investment Products: NOT FDIC INSURED-NO BANK GUARANTEE-MAY LOSE VALUE. By utilizing multiple banks, the IDA has been structured to provide you with FDIC insurance of up to $500,000 per depositor in each recognized legal capacity (e.g., up to $500,000 for individual accounts and $1,000,000 for joint accounts). Each bank’s insurance will cover your cash balances up to the current $250,000 per-depositor FDIC maximum for bank failure. Three of the Program Banks are Charles Schwab Bank, SSB Charles Schwab Premier Bank, SSB and Charles Schwab Trust Bank, each an affiliate of TD Ameritrade. ![]() Carefully review the Margin Handbook and Margin Disclosure Document for more details.Ĭash in the IDA is held at one or more Program Bank. Margin trading privileges subject to TD Ameritrade review and approval. Margin is not available in all account types. Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Account Types & Investment Products Overview.Contribution and Eligibility Calculator.Investment Management Services Overview. ![]()
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