TD Ameritrade does not offer a dedicated high yield savings account
TD Ameritrade, the brokerage owned by Charles Schwab since 2020, does not have a standalone high yield savings product. If you hold cash at TD Ameritrade, it sits in a money market fund or a sweep account — not a savings account. The rate you earn depends on which sweep option your account is set to use, and those rates change with the Federal Reserve's decisions.
If you want a high yield savings account, you will need to open one at a separate bank or financial institution. TD Ameritrade can hold the account as a linked external account, but the savings account itself would be elsewhere.
Key Takeaways
- TD Ameritrade offers money market funds and sweep accounts for idle cash, not a high yield savings account.
- Your cash sweep rate depends on which sweep option you choose and fluctuates with Federal Reserve rate changes.
- You can link an external high yield savings account to your TD Ameritrade brokerage for transfers, but the account must be opened at another bank.
- Charles Schwab Bank, which is affiliated with TD Ameritrade's parent company, does offer a high yield savings account if you want to stay within the same corporate family.
How TD Ameritrade handles idle cash
When you deposit money into a TD Ameritrade brokerage account and do not immediately invest it, the cash goes into a sweep account. A sweep automatically moves your uninvested cash into a money market fund or money market deposit account, depending on which sweep option you have selected. This prevents your cash from sitting idle earning nothing.
TD Ameritrade offers several sweep options. The default is usually a money market fund, but you can also choose a money market deposit account at a partner bank. The rate you earn on either option changes regularly — it is not locked in. Rates track with the Federal Reserve's benchmark rate, so when the Fed raises or lowers rates, your sweep rate adjusts accordingly.
You can view your current sweep rate and change your sweep option in your account settings. The rate is posted on TD Ameritrade's website, though it may take a day or two to update after a Fed decision.
The difference between a sweep account and a high yield savings account
A high yield savings account is a deposit account at a bank or credit union. Your money is FDIC-insured (up to $250,000 per depositor per institution), and the bank pays you interest. You can withdraw your money at any time without penalty. High yield savings accounts are designed to hold cash you want to keep safe and accessible.
A sweep account at a brokerage is designed to hold cash temporarily while you decide what to invest in. Money market funds are not FDIC-insured — they are securities. Money market deposit accounts at partner banks are FDIC-insured, but the rate may be lower than what you could find at a standalone high yield savings account. Sweep accounts are a convenience feature, not a savings product.
If you want the safety and rate of a true high yield savings account, you need to open one at a bank. You can then transfer money between that account and your TD Ameritrade brokerage as needed.
Opening a linked high yield savings account
TD Ameritrade allows you to link external bank accounts to your brokerage account. This means you can transfer money from a high yield savings account at another bank directly into TD Ameritrade, or vice versa. The transfer usually takes one to three business days via ACH (Automated Clearing House).
To link an account, log into your TD Ameritrade account and go to the Accounts section. Select the option to add an external account, then provide the bank name, account number, and routing number. TD Ameritrade will verify the account by depositing two small amounts (usually under $1 each) and asking you to confirm the amounts. Once verified, you can transfer money between the accounts.
This setup lets you keep your high yield savings account at a bank that offers a competitive rate, while still using TD Ameritrade for investing. You move money between them as needed.
Charles Schwab Bank as an alternative
Charles Schwab Bank, owned by the same parent company as TD Ameritrade, does offer a high yield savings account. If you want to stay within the Schwab ecosystem, you can open a Schwab Bank savings account and link it to your TD Ameritrade brokerage. The rate on the Schwab Bank savings account is competitive with other high yield options, though you should compare it to rates at other banks before deciding.
The advantage of using Schwab Bank is that transfers between your Schwab Bank savings account and your TD Ameritrade brokerage are often faster (sometimes same-day) and you manage everything through one login. The disadvantage is that you are not shopping around for the best rate — you are staying with one company.
Comparing your options for cash at TD Ameritrade
| Option | Rate Type | FDIC Insured | Withdrawal Speed | Best For |
|---|---|---|---|---|
| Money market fund sweep | Variable, tracks Fed rate | No | Immediate (within brokerage) | Short-term cash you plan to invest |
| Money market deposit sweep | Variable, tracks Fed rate | Yes | Immediate (within brokerage) | Short-term cash you want insured |
| External high yield savings account | Variable, set by bank | Yes | 1–3 business days (ACH) | Cash you want to keep safe and earn a competitive rate |
| Schwab Bank savings account | Variable, set by Schwab Bank | Yes | Often same-day to brokerage | Cash you want to keep within the Schwab family |
What to do if you want a high yield savings account
If you are looking for a high yield savings account to pair with your TD Ameritrade brokerage, you have two main paths. First, you can open a high yield savings account at any bank that offers one — online banks like Marcus, Ally, or American Express Personal Savings often have competitive rates. Then link that account to TD Ameritrade so you can move money between them. This gives you the freedom to shop for the best rate.
Second, you can open a Schwab Bank savings account. This keeps everything in one place and may offer faster transfers to your brokerage. Compare the Schwab Bank rate to rates at other banks before you decide — the best option depends on which bank is offering the highest rate at the time you open the account.
Do not rely on TD Ameritrade's sweep account as a long-term savings vehicle. Sweeps are designed to hold cash temporarily, not to be your primary place to earn interest on savings.
Frequently Asked Questions
Can I earn interest on cash sitting in my TD Ameritrade account?
Yes. Your cash is automatically swept into a money market fund or money market deposit account, and you earn interest on it. The rate varies depending on which sweep option you have selected and changes with Federal Reserve rate decisions. Check your account settings to see your current sweep rate.
Is my money in a TD Ameritrade sweep account FDIC insured?
It depends on which sweep option you chose. If your cash is in a money market fund, it is not FDIC-insured. If it is in a money market deposit account at a partner bank, it is FDIC-insured up to $250,000. You can change your sweep option in your account settings if you want the insurance protection.
How do I transfer money from a high yield savings account to TD Ameritrade?
Link your savings account to your TD Ameritrade brokerage by providing your bank's routing number and your account number. TD Ameritrade will verify the account with two small test deposits. Once verified, you can transfer money between the accounts via ACH, which usually takes one to three business days.
Does TD Ameritrade offer better rates than a high yield savings account?
Not necessarily. TD Ameritrade's sweep rates are competitive, but they are not always the highest available. High yield savings accounts at online banks sometimes offer higher rates. Compare the current rates before deciding where to keep your cash.
Can I use both a TD Ameritrade sweep account and an external high yield savings account?
Yes. You can keep some cash in your TD Ameritrade sweep account for investing and keep other cash in a high yield savings account at another bank for savings. Transfer money between them as needed.