As an added benefit to our clients, every Schwab account includes a free feature that pays interest on idle cash in your account. Whether you select this service at account opening or automatically receive a default feature, our cash features help ensure that you earn a yield on your cash pending investment.
How the cash feature works
Any cash that remains in your account is automatically invested.
The way your cash is invested depends on the type of account you have and your total household assets at Schwab.
Your cash stays in your brokerage account and is generally available immediately to make a purchase or withdrawal.
Cash Features
Your household balance
Click for rates and information. Your cash may be invested in one of the following:
1. If you're not sure what your household balance is, call a Schwab representative at 800-435-4000.
Bank sweep accounts are generally held at Charles Schwab Bank Schwab Bank and Charles Schwab & Co., Inc. are separate but affiliated companies and wholly owned subsidiaries of The Charles Schwab Corporation.
Funds deposited at Schwab Bank are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 when aggregated with all other deposits held by you in the same capacity at Schwab Bank. Funds on deposit at Schwab Bank are not deposits or obligations of Charles Schwab & Co., Inc. and may not be covered by the Securities Investor Protection Corporation (SIPC). NOTE:The temporary increase of FDIC insurance coverage to $250,000 for all insurable capacities has been extended through December 31, 2013. If not further extended, FDIC coverage will revert to $100,000 on January 1, 2014 for all insurable capacities except IRAs and certain other self-directed retirement accounts and plans.
The Bank Sweep feature on your brokerage account is not subject to the FDIC’s Transaction Account Guarantee Program. Customers with funds held in deposit accounts at Schwab Bank under the Bank Sweep program will continue to be insured until December 31, 2013, for up to $250,000 under the FDIC’s general deposit insurance rules.
The Schwab One Interest feature is not a bank account and is not FDIC-insured. Charles Schwab & Co., Inc. is a member of the Securities Investor Protection Corporation (SIPC), which provides up to $500,000 (including $100,000 for claims for cash) of coverage when aggregated with other securities and cash held by you in the same capacity at Charles Schwab & Co., Inc. Money market mutual funds custodied at Schwab are considered securities for SIPC purposes.
Securities products and services (including unswept or intraday cash, net credit or debit balances, and money market funds) offered by Charles Schwab & Co., Inc. (member SIPC) are not deposits or obligations of Charles Schwab Bank, are subject to investment risk, are not FDIC-insured, may lose value, and are not bank-guaranteed.
(0905-9212)
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If you have questions about your existing service or would like to make a change, please call 866-232-9890.
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To view your current service, log in, click the “Account” tab, then click on “Balances.”
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