Are you searching for the best way to earn interest on your uninvested USD cash while waiting for the right investment opportunity?
With the recent significant rise in interest rates globally, investment brokerages have begun offering high-interest brokerage accounts to attract new investors.
Among the current market offerings, Charles Schwab provides the highest interest rate of 4.75% on uninvested USD cash.
In this blog post, we will explore the best interest rate offerings available right now for your uninvested USD cash.
Best 7 Brokers for interest rates on uninvested cash in USD
- Charles Schwab: Best for interest on uninvested cash (USD)
- Robinhood: Best for commission-free trades
- Wealthfront: Ideal for automated investing
- Public.com: Excellent for full-service brokerage
- Interactive Brokers: Best for international (non-US) investors
- Webull: Great for technical analysis tools
- Ally invest: Best for integrated banking services
Comparison of 7 best brokers for interest rates on uninvested cash in USD
Best Brokers for interest rates on uninvested cash in USD
1. Charles Schwab
Charles Schwab provides a variety of options for parking your cash to earn interest, with the best products offering up to 4.75% interest credited monthly.
Additionally, Schwab Bank Investor Savings Accounts and Certificates of Deposit (CDs) are FDIC-insured up to $250,000 per depositor. Schwab Purchased Money Funds are backed by the US Government.
2. Public.com
Public.com offers a 4.60% interest rate on uninvested USD balances via the Treasury Account (annualized 6-month T-Bill rate). Interest accrued for each day during the period is added and paid out on or after the 16th of each month or the next business day if that falls on a weekend.
Your funds are held with The Bank of New York Mellon, providing SIPC insurance protection.
3. Robinhood
Robinhood offers a 4.50% interest rate on uninvested USD balances, credited monthly.
Uninvested cash in the brokerage account that participates in the cash sweep program is eligible for FDIC insurance up to $2.5 million, distributed across multiple banks. Additionally, your brokerage account is protected by SIPC up to $500,000, including $250,000 for cash claims.
4. Wealthfront
Wealthfront offers a 4.50% interest rate on uninvested USD balances, credited monthly.
Wealthfront uses a sweep system to offer up to $5 million in FDIC insurance (or $10 million for joint accounts) on your Cash Account deposits. Wealthfront can sweep your deposits to up to 20 partner banks ($250,000 x 20 = $5M) at any given time.
Wealthfront also offers automated investing to simplify the process, adding an average of 1.8% to clients’ after-tax returns through tax loss harvesting.
5. Interactive Brokers
Interactive Brokers offers a maximum interest rate of 4.33% for USD balances. Interest accruals are calculated monthly and credited within the first days of the following month, based on settled money only.
Accounts with a Net Asset Value (NAV) of USD 100,000 or more are eligible for the full rate; lower balances earn proportionately less. To estimate your rate, you can use their online calculator.
For more details on the protection provided for US accounts, we have covered this extensively in a separate blog post if you are interested in learning more about your protections.
Interested in knowing more about Interactive Brokers? Read our Interactive Brokers review.
6. Webull
Webull offers a 4.25% interest rate on uninvested USD balances, credited monthly. Your funds are protected by SIPC insurance, covering up to $500,000.
Interested in knowing more about Webull? Read our Webull review.
7. Ally invest
Ally Invest offers a 4.00% interest rate on uninvested USD balances, credited monthly.
Your funds are protected by SIPC insurance up to $500,000, including $250,000 for cash claims. Additionally, Certificates of Deposit (CDs) are covered by FDIC insurance through partner banks.
Bottom line
In summary, the interest rates on uninvested USD cash provided by the top brokers offer a range of opportunities and attractive options for investors to maximize their idle funds across various platforms.
If you’re looking for the highest interest rate, Charles Schwab offers 4.75% with no minimum deposit.
For those unable to open an account with Public.com due to country restrictions, Interactive Brokers is a great alternative, offering up to a 4.33% interest rate on your uninvested cash.
It’s essential to consider the specific requirements and restrictions of each broker, such as minimum deposits or the protection schemes available, to ensure they align with your investment needs.
Looking for interest in EUR and GBP cash? Check our articles on the best brokerage account interest rates on Uninvested EUR cash and Uninvested GBP cash.
Feel free to get in touch if you want to share feedback or have any questions!
