Best Brokers That Pay Dividends on Uninvested Cash

Your uninvested cash doesn’t have to sit idle. Many brokers offer competitive interest rates on cash balances, transforming dormant funds into an active component of your wealth-building strategy. 

This practice, often facilitated through cash sweep programs or integrated cash management accounts, allows investors to maximize returns by earning passive income on funds awaiting investment or held for liquidity. 

It’s important to understand the trade-offs, such as varying interest rates, potential minimum balance requirements or the need for premium subscriptions to ensure the platform you choose aligns with your financial goals.

This guide will simplify the process by evaluating some of the top brokers that pay dividends on uninvested cash.

How We Chose the Best Brokers That Pay Dividends On Uninvested Cash

We evaluated brokers that pay dividends on uninvested cash based on their pricing, ease of use, educational tools, quality and breadth of educational resources and customer service responsiveness.

5 Best Brokers That Pay Dividends On Uninvested Cash

Fidelity – Best for High-Yield Default Cash Sweep

Unlike some brokers that sweep cash into low-interest bank accounts by default, Fidelity automatically places uninvested funds into a competitive money market mutual fund – the Fidelity Government Money Market Fund. The fund offers a good return on idle cash – currently about 3.97% – without requiring special action or premium subscriptions.

Key Features: 

• Fees: Fidelity offers zero commission for online U.S. stock, exchange-traded fund (ETF) and options trades, with a $0.65 per contract on options. No account minimum is required to open a brokerage account. The competitive interest earned on uninvested cash comes without additional fees or premium membership requirements.

• Investment Access: Fidelity provides access to a variety of investment products, including domestic and international stocks, more than 3,700 no-transaction-fee mutual funds and a wide selection of ETFs, options, bonds and CDs. 

• Platform Experience: Fidelity’s user-friendly desktop and mobile apps offer strong functionality for managing accounts, placing trades and accessing research. 

• Tools/Education Highlights: Fidelity’s tools and education include screeners for stocks, ETFs and mutual funds, sophisticated charting capabilities and in-depth research from a variety of third-party providers. The Fidelity Learn center provides articles, videos, webinars and covers investment topics ranging from beginner essentials to advanced trading strategies.

• Drawbacks: Fidelity’s default cash sweep offers a competitive yield, but it’s a money market fund and not directly insured by the Federal Deposit Insurance Corp. (FDIC) like a bank account is. For people who want FDIC insurance on their cash, Fidelity offers an FDIC-Insured Deposit Sweep option, although its yield is typically lower. 

Who It’s Best For: Long-term investors, retirement savers and those seeking a full-service brokerage that combines commission-free trading with a high-yield default option for uninvested cash, comprehensive research and extensive educational resources. 

Vanguard – Best for Best for Low-Cost Index Investing and Integrated Cash Management

Vanguard, a pioneer in low-cost index investing, extends its value-oriented philosophy to uninvested cash through its Vanguard Cash Plus Account, currently offering an annual percentage yield (APY) of about 3.65%. The account provides a convenient way for clients to earn interest on their liquid funds while maintaining access to Vanguard’s low-cost investment products.

Key Features: 

• Fees: Vanguard doesn’t charge a commission for online trades of Vanguard ETFs and mutual funds. A $25 annual fee applies to each brokerage and mutual fund-only account. It can be waived by signing up for electronic delivery of account documents. The Vanguard Cash Plus Account doesn’t have a minimum balance requirement to open and typically has no fees beyond an annual fee that can be waived by opting for e-statements. The Vanguard Cash Plus Account provides a competitive 3.65% APY and is FDIC-insured through partner banks.

• Investment Access: Vanguard provides access to many investment products, primarily focusing on its own low-cost mutual funds and ETFs. Investors also can trade stocks and non-Vanguard ETFs, bonds and CDs. The platform’s design and tools are most optimized for its core fund offerings.

• Platform Experience: Vanguard’s desktop platform and mobile app are designed for long-term, passive investors. It’s easy to manage existing investments and contribute to your accounts. 

• Tools/Education Highlights: Vanguard’s tools and educational content are geared toward long-term financial planning and retirement. It has calculators for college savings and retirement planning, asset allocation questionnaires and resources explaining its investment philosophy. It offers performance tracking and basic research but its strength is guiding strategic asset allocation and cost-effective investing rather than providing charting or real-time trading analytics. 

• Drawbacks: Vanguard’s primary method for moving money is through online transfers and it does not support check writing or direct cash deposits/withdrawals at physical branches. The platform is less feature-rich for active trading than what other brokers offer. It doesn’t have advanced charting tools, real-time data for all securities or complex order types. Customer service hours are limited. 

Who It’s Best For: Long-term, passive investors and retirement savers who want low-cost index funds and ETFs, a strong APY on their uninvested cash and a hands-off approach to portfolio management.

Moomoo – Best for High-Yield Cash Sweep with Advanced Trading Tools

Moomoo offers a competitive 4.1% interest rate on uninvested cash through its Cash Sweep Program, which often has attractive promotional APYs. Moomoo’s trading platform has advanced tools favored by active traders, including extensive charting capabilities, Level 2 market data and an active social community. 

Key Features: 

• Fees: Moomoo doesn’t charge a commission for U.S. stock, ETF and options trading and there are no minimums required to open an account or to participate in the Cash Sweep Program. Moomoo sometimes offers promotional APYs on uninvested cash for new and qualifying existing users. The current base rate is 4.1%, which could temporarily rise to 8.1% for meeting specific deposit or referral conditions.

• Investment Access: Moomoo provides access to a range of global financial markets, including U.S. and international stocks, ETFs and options. Users can also access data for futures and forex and the cash sweep program is FDIC-insured through partner banks.

• Platform Experience: Moomoo’s feature-rich trading platform is available on desktop or as a mobile app. It has professional-grade charting with numerous indicators and drawing tools, real-time Level 2 market data and customizable layouts. The mobile app allows traders to conduct in-depth analysis and execute trades from their smartphones.

• Tools/Education Highlights: Moomoo offers advanced screeners, visualized financial data and institutional tracking. Its charting tools offer more than 60 technical indicators and 38 drawing tools. Features like Unusual OPtions Activity and Why Is It Moving help users spot potential trading opportunities. The platform also includes a paper trading simulator for practicing strategies risk-free. 

• Drawbacks: Although the platform has many features, its complexity can be overwhelming for novice investors. Customer service is available via live chat 24/7, but phone support is limited to trading hours. 

Who It’s Best For: Active traders and tech-savvy investors who want a powerful trading platform with advanced charting and analysis tools, competitive interest rates on their uninvested cash and access to global investment products.

Wealthfront – Best for High-Yield Cash Account with Automated Investing

The Wealthfront Cash Account offers a competitive 4% interest rate on uninvested cash. Designed as a hybrid checking and savings product, the account allows users to earn a good yield on their liquid funds while benefiting from integrated features like bill pay, direct deposit and a debit card. Wealthfront differentiates itself by combining attractive cash yields with pathways to its robo-advisory investment services. 

Key Features: 

• Fees: The Wealthfront Cash Account charges zero account fees and has no minimum balance to earn its competitive APY of about 4%. New customers are sometimes eligible for a promotional boost of 0.5% APY for three months. Wealthfront’s automated investing accounts have a 0.25% annual fee on assets under management, but the Cash Account is fee-free. 

• Investment Access: The Wealthfront Cash Account is for cash management. It doesn’t facilitate trading stocks or options, but it integrates with Wealthfront’s automated investing accounts, which focus on low-cost ETFs with options for socially responsible investing and direct indexing. The Cash Account is not a brokerage account for self-directed trading of stocks and options. Funds in the Cash Account are FDIC-insured for up to $8 million through a network of partner banks. 

• Platform Experience: Wealthfront’s intuitive web interface and mobile app are designed to be easy to use. Users can track balances, set up direct deposits, pay bills and manage their debit cards. The Path financial planning tool is useful for projecting financial goals.

• Tools/Education Highlights: Wealthfront offers financial planning tools that provide personalized financial advice and projections for goals like retirement, homeownership and college savings. The Cash Account offers early direct deposit, free ATM withdrawals and compatibility with payment apps. Users can set up automated transfers from their Cash Account to their Wealthfront investment accounts to simplify saving and investing. Educational content focuses on financial planning, automated investing strategies and tax-loss harvesting.

• Drawbacks: The Cash Account does not support cash deposits through physical branches or check writing directly from the account. Wealthfront’s focus is on automated investing and cash management, so it’s not suitable for active traders who want access to stock trading, complex options strategies or extensive real-time market data. Customer support is mainly available through email or the help center. 

Who It’s Best For: Investors who want a high-yield, fee-free cash account with FDIC insurance, integration with automated investment services and digital financial planning tools. 

Robinhood – Best for Free Trading

Robinhood offers a competitive 4% interest rate on uninvested cash through its Robinhood Gold membership. The Gold membership, combined with Robinhood’s user-friendly interface, commission-free trading for a variety of assets and premium features, appeals to investors who want a blend of high-yield cash management and accessible trading. 

Key Features: 

• Fees: Robinhood offers zero commission for U.S. stock, ETF and options trades and there’s no account minimum to open a brokerage account. The 4% APY on uninvested cash is available to Robinhood Gold members, which costs $5 per month or $50 annually. Without Gold the APY on cash is only around 0.01%. Funds are FDIC-insured up to $2.5 million through a network of program banks. 

• Investment Access: Robinhood offers access to U.S. exchange-listed stocks, ETFs and options. It also offers cryptocurrency trading, fractional shares and American Depository Receipts (ADRs) for global companies. It does not support mutual funds or bonds, which might limit diversification for some investors.

• Platform Experience: Robinhood’s intuitive, mobile-first platform design makes investing accessible to beginners. Its desktop platform, Robinhood Legend, also offers advanced charting, customizable layouts and real-time data. The mobile app makes it easy to execute trades, manage watchlists and access basic market information.

• Tools/Education Highlights: In addition to the higher APY, Robinhood Gold members gain access to features like a 3% match on eligible IRA contributions, compared to 1% for non-Gold members, larger instant deposit limits and professional research from Morningstar. Gold members also get Nasdaq Level 2 market data for deeper insights into order books. Robinhood offers basic educational articles.

• Drawbacks: The high APY on uninvested cash is contingent on a paid Robinhood Gold membership. Customer service has gotten mixed reviews, but Robinhood has improved it, offering 24/7 in-app chat and phone callbacks. The platform’s simplicity means it lacks some advanced research, screening and complex order types. There’s a $100 transfer fee if you move your investments to another broker. 

Who It’s Best For: Cost-conscious, mobile-first investors and active traders who want commission-free trading, a high interest rate on uninvested cash and are willing to pay for a Robinhood Gold membership to access premium features like research and increased instant deposit limits. 

Choosing the Right Broker that Pays Dividends on Uninvested Cash

Choosing a broker that pays dividends or interest on your uninvested cash is more than just a convenience – it’s a smart way to ensure every dollar in your account is working toward your financial goals. With the right broker, idle cash becomes an income-generating asset that complements your broader investment strategy.

Fidelity is a standout option for most investors thanks to its competitive default money market sweep that requires no extra action or fees. It's especially attractive for long-term investors who value both strong yields and access to a full-service platform.

Vanguard, true to its low-cost philosophy, offers a strong APY through its FDIC-insured Cash Plus Account, making it ideal for hands-off index investors who want their unallocated funds to keep pace with inflation.

For active traders, moomoo stands out with its high promotional APYs and robust technical tools. If you're someone who frequently analyzes charts or executes multileg strategies but still wants your cash to earn interest, moomoo strikes a balance.

If you're more focused on automation and digital-first financial planning, Wealthfront offers an excellent, fee-free Cash Account with a competitive rate and seamless integration into its robo-advisory investment platform.

Robinhood, on the other hand, caters to mobile-first, cost-conscious investors. While the high APY is tied to its Gold membership, the fee may be well worth it for those who also take advantage of the platform's additional premium features.

Ultimately, the best broker for uninvested cash is the one that fits naturally into your investing habits. Whether you're optimizing every dollar through daily trades or letting a long-term plan run its course, make sure your cash isn't just sitting – it should be earning right alongside the rest of your portfolio.

Frequently Asked Questions