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Savings & Income
Best Cash Management Accounts and High-Yield Savings
On September 29, 2026, Vanguard’s settlement fund yielded 3.78% and E*TRADE Premium Savings paid 3.75% APY. Wealthfront’s cash account paid 3.55%, with FDIC coverage up to $8M. Check your default: uninvested brokerage cash earns 0.01% at Schwab and Merrill, and Fidelity’s CMA sweep pays 1.96%.
Which Cash Account Fits You
Rates fell by about a point since spring. The bigger difference now is where your cash sits by default, from 3.78% at Vanguard to 0.01% in some brokerage sweeps. Checked September 29, 2026.
Highest FDIC-insured base rate
E*TRADE Premium Savings
3.75% APY base, 4.25% for 6 months on new accounts, and FDIC coverage up to $500,000 ($1M joint).
E*TRADE review →
Brokerage cash that earns by default
Vanguard
Uninvested cash sits in VMFXX, yielding 3.78%. It’s a money market fund, so it isn’t FDIC-insured.
See in comparison table ↑
Large balances
Wealthfront
3.55% APY base with FDIC coverage up to $8M ($16M joint), and up to 4.45% with boosts.
See in comparison table ↑
Savings with no conditions
Marcus by Goldman Sachs
3.50% APY, no fees and no minimum, with nothing to qualify for.
See in comparison table ↑
Trading-account cash
Interactive Brokers
3.38% on IBKR Pro cash above the first $10,000, paid automatically. SIPC-covered, not FDIC.
Interactive Brokers review →
A no-subscription brokerage cash account
Public
3.30% APY with coverage up to $5M through 20 partner banks, with no fees.
Public review →Cash Management Account vs High-Yield Savings
| Cash management account | High-yield savings account | |
|---|---|---|
| Who offers it | Brokerages and fintechs, like Wealthfront, Betterment and Public | Banks, like Marcus, Ally and SoFi |
| How it’s held | Swept to several partner banks | Deposited at one bank |
| FDIC coverage | Often $2M–$8M, spread across partner banks | Usually $250,000 per depositor, per bank, per ownership category |
| Rates checked | 3.30%–3.55% base, higher with promos | 3.10%–3.75% base |
| Best for | Large balances and moving cash into investments | Simple savings next to a checking account |
From each firm’s official pages, checked September 29, 2026. A money market fund, like Vanguard’s settlement fund, is neither: it’s an investment covered by SIPC, not FDIC.
What your cash earns in a year
| Account | Rate | Per year |
|---|
Base rates checked September 29, 2026, held for a full year. Rates are variable and will change. Robinhood is shown after its $60 a year Gold fee. IBKR pays nothing on the first $10,000, and its rate also depends on account size.
Four Places Your Cash Can Sit
FDIC
Bank savings
Deposited at one bank and insured up to $250,000 per ownership category. E*TRADE’s savings account extends that to $500,000.
FDIC, spread out
Bank sweep
Split across partner banks for higher total coverage. The rate depends on the program: Wealthfront pays 3.55%, Schwab’s brokerage sweep 0.01%.
SIPC
Money market fund
An investment in short-term debt, like Vanguard’s VMFXX or Fidelity’s SPAXX. Yields usually track Treasury bills.
SIPC
Broker-held cash
Cash held by the broker, as at Interactive Brokers, which pays interest on balances above $10,000.
What To Check Before You Move Your Cash
- Base rate vs promo rate. Wealthfront, Betterment, SoFi and E*TRADE advertise boosts that end or need conditions. Compare base rates.
- Conditions. SoFi pays 3.30% only with direct deposit or $5,000 in deposits every 31 days, otherwise 0.80%.
- Subscriptions. Robinhood’s 3.6% needs Gold at $5 a month, and Webull’s 3.60% needs Premium.
- What your brokerage sweep pays. Schwab, E*TRADE and Merrill sweep uninvested brokerage cash at 0.01% unless you move it.
- FDIC or SIPC. FDIC covers bank deposits; SIPC covers money market funds and cash at a failed broker, not investment losses.
- Coverage across banks. Money already at a sweep’s partner bank counts toward your $250,000 limit there.
How To Get More From Your Cash
- Find your current rate. Check what your brokerage sweep or savings account pays today.
- Separate spending cash from savings. Keep a buffer in checking and move the rest.
- Choose FDIC or a money market fund. FDIC for guaranteed deposits; a government money market fund for yields that track T-bills.
- Compare base rates. Use the calculator above, and treat promo boosts as temporary.
- Consider CDs or T-bills for money you won’t need. Brokered 1-year CDs paid 4.60% on September 29, 2026.
- Recheck every few months. Savings rates follow Federal Reserve decisions and can change without notice.
How We Compared
Rates, coverage and conditions come from each firm’s official rate and account pages, checked September 29, 2026 and summarized in the comparison table. Base rates are shown before promotional boosts; the date of each rate is in each row’s details. Firms marked “Special Offer” are AInvest partners, and AInvest may be compensated when you open an account through this page. Rates are variable and can change at any time.
FAQ & Glossary
What is the best cash management account?
On September 29, 2026, Wealthfront’s Cash Account paid 3.55% APY base with FDIC coverage up to $8M, Betterment Cash Reserve 3.50% with coverage up to $4M, and Public 3.30% with coverage up to $5M. E*TRADE Premium Savings paid the highest FDIC-insured base rate checked, 3.75%. Promo boosts can raise these for a limited time.
What is the difference between a cash management account and a high-yield savings account?
A high-yield savings account holds your money at one bank, usually with FDIC coverage up to $250,000. A cash management account, offered by brokerages and fintechs, sweeps your money to several partner banks, so total FDIC coverage can reach $2M to $8M. Rates are similar; check the base rate, not the promo.
What makes one high-yield account safer than another?
Safety is primarily legal and operational: FDIC insurance structure, clear account ownership, transparent policy terms, and reliable transfer operations under stress.
Should I move all idle cash to the highest APY immediately?
No. Validate transfer speed and rate stability first with a small test deposit, then scale gradually once execution quality is proven.
What is APY?
Annual Percentage Yield. The effective yearly return on a deposit, accounting for compounding of interest.
What is Teaser Rate?
A promotional interest rate offered for a limited time (often 3–6 months), then resets to a lower base rate.
What is FDIC Insurance?
Federal Deposit Insurance Corporation coverage that protects your deposits up to $250,000 per account type at each insured bank.
What is Transfer Hold?
A delay in crediting funds when moving money between accounts, typically 1–2 business days.
What is Basis Point (bps)?
One hundredth of one percent (0.01%). Used to describe small rate changes: 100 bps = 1%.
What is Net Yield?
The actual return you receive after fees, transfer costs, and taxes are deducted from the stated interest rate.