Top News

Some Investors Are Missing Out on Higher Yields—and Don’t Know It


With ‘cash sweeps,’ brokerage firms automatically put uninvested client assets into a low-yielding bank-deposit program

As money-market rates have risen, investors would do well to check what they are getting in sweep accounts, say advisers.Illustration: Alex Nabaum

By Randall Smith

Stocks and bonds both fell sharply last year. But one bright spot in financial markets was the rising interest rates on money-market funds, which in December topped 4% on average for the first time in 15 years.

Money-fund rates have stayed high so far this year, now averaging 4.18%, according to Crane Data LLC. That’s a big increase from just a few months ago, and investors who aren’t aware of the climb in rates—or who don’t act on it—could be missing out on an opportunity for much higher returns than they’re getting now on the cash in their brokerage accounts.

Already a member? Sign In

Sponsored Offers

Bed Bath & Beyond will close all but one Kansas City-area store; liquidation sales begin at four more locations

Previous article

Stocks, Futures Fall on Fed Outlook; Dollar Rises: Markets Wrap

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Top News