Does Td Ameritrade Pay Interest On Cash Balances?

With interest rates on the rise in 2023, many investors are wondering if their brokerage accounts can earn interest on uninvested cash balances. TD Ameritrade is one of the largest retail brokerages, but do they pay interest on cash? Let’s take a detailed look.

If you’re short on time, here’s a quick answer: Yes, TD Ameritrade does pay interest on eligible cash balances in brokerage accounts and IRAs, but the rate is very low compared to savings accounts and money market funds.

How TD Ameritrade Cash Interest Works

When it comes to cash balances in your TD Ameritrade account, you might be wondering if the company pays you any interest. Here’s what you need to know about how TD Ameritrade handles cash interest:

Sweep Programs

TD Ameritrade offers different sweep programs for managing cash balances. These programs automatically transfer any uninvested cash into interest-earning vehicles. The specific sweep program you are enrolled in determines how your cash balance is handled and whether you earn any interest.

One of the sweep programs offered by TD Ameritrade is the TD Ameritrade FDIC Insured Deposit Account (IDA), which is held at TD Bank, N.A. This program provides up to $500,000 in FDIC insurance for your cash balances, allowing you to earn interest while keeping your funds secure.

Eligibility Requirements

To be eligible for cash interest through TD Ameritrade, you generally need to have a certain minimum balance in your cash account. The specific requirements may vary depending on the sweep program you are enrolled in.

It’s important to review the terms and conditions of your specific program to understand the eligibility criteria.

Additionally, certain account types or brokerage services may have different eligibility requirements for earning cash interest. For example, some retirement accounts or margin accounts may not be eligible for cash interest.

Interest Rates

The interest rates offered by TD Ameritrade for cash balances can vary and are subject to change. The rates are typically influenced by market conditions and prevailing interest rates set by the Federal Reserve.

TD Ameritrade’s website provides up-to-date information on the current interest rates for different sweep programs. It’s worth noting that interest rates for cash balances are generally lower compared to other investment options, such as bonds or stocks.

Keep in mind that earning interest on your cash balances is just one factor to consider when choosing a brokerage firm. It’s important to evaluate other aspects such as trading fees, customer service, and investment options before making a decision.

For more information on TD Ameritrade’s cash interest programs and current interest rates, you can visit their official website at

Comparing TD Ameritrade’s Rates to Alternatives

When it comes to cash balances in brokerage accounts, many investors wonder if they can earn interest on their idle cash. TD Ameritrade, one of the leading online brokerage firms, offers various investment options for its clients.

However, it’s important to compare TD Ameritrade’s rates to alternative options to make an informed decision.

Online Savings Accounts

One alternative to consider when looking for interest on cash balances is an online savings account. These accounts are offered by banks and typically offer higher interest rates than traditional savings accounts.

Some popular online banks include Ally Bank, Marcus by Goldman Sachs, and Discover Bank.

With online savings accounts, investors can earn interest on their cash balances while still having access to their funds. These accounts are FDIC-insured, providing a level of security for investors. Additionally, most online banks have user-friendly interfaces and 24/7 customer support.

It’s worth noting that interest rates on online savings accounts can vary, so it’s important to compare rates before making a decision. Websites like or provide up-to-date information on the best rates available.

Money Market Mutual Funds

Another option to consider is investing in money market mutual funds. These funds invest in short-term securities, such as Treasury bills and commercial paper, and aim to provide a stable return on investment.

Money market mutual funds typically offer higher interest rates compared to traditional savings accounts. Investors can choose from a variety of funds with different risk levels and investment strategies.

However, it’s important to carefully review the fund’s prospectus and understand the associated risks.

Some popular money market mutual fund providers include Vanguard, Fidelity, and Schwab. These providers offer a range of funds with competitive interest rates. Websites like or can provide detailed information on different money market mutual funds.

Maximizing Cash Interest at TD Ameritrade

If you have a cash balance in your TD Ameritrade account, you may be wondering if the company pays interest on that balance. In this article, we will explore the options available to you for maximizing the interest you can earn on your cash balances at TD Ameritrade.

Meet Eligibility Requirements

To start earning interest on your cash balances at TD Ameritrade, you need to meet certain eligibility requirements. Typically, this includes maintaining a minimum cash balance in your account. It’s important to check with TD Ameritrade directly or visit their official website for the most up-to-date information on eligibility requirements.

Consider a Money Market Fund

One way to potentially earn more interest on your cash balances at TD Ameritrade is to consider investing in a money market fund. Money market funds are low-risk investments that primarily invest in short-term debt securities, such as Treasury bills and commercial paper.

These funds aim to maintain a stable net asset value of $1 per share.

TD Ameritrade offers a variety of money market funds that you can choose from. These funds may have different yields and expense ratios, so it’s important to do your research and select the one that aligns with your investment goals and risk tolerance.

You can find more information about TD Ameritrade’s money market funds on their official website.

Shop Around

It’s always a good idea to shop around and compare interest rates and offerings from different financial institutions. While TD Ameritrade may offer competitive interest rates on cash balances, there may be other institutions that offer even higher rates.

Take the time to research and compare different options to ensure you are maximizing the interest you can earn on your cash balances.

Remember, when it comes to investing and earning interest, it’s important to consider your individual financial goals, risk tolerance, and investment time horizon. Consulting with a financial advisor can provide you with personalized guidance and help you make informed decisions.


In summary, TD Ameritrade does provide interest on eligible cash balances, but the rate is very low compared to savings accounts and money market mutual funds. To maximize cash interest, investors should consider moving excess cash to one of those alternatives.

While not ideal for cash yields, TD Ameritrade offers competitive trading commissions and a wide range of investment choices for building a diversified portfolio.

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