How does a Morgan Stanley sweep account work

A Morgan Stanley sweep account is a type of bank deposit program that automatically deposits free credit balances held in an account at Morgan Stanley Smith Barney LLC into interest-bearing deposit accounts at FDIC-insured banks. Here's how it works:

1. **Automated Deposit**: Morgan Stanley sweeps excess funds from your brokerage account into a bank deposit account, ensuring that idle cash earns interest.
2. **Interest-Bearing**: The deposited funds earn interest, which is higher than what you might receive on a standard savings account.
3. **FDIC Insurance**: The deposits are insured by the Federal Deposit Insurance Corporation (FDIC), providing an additional layer of security for your funds.
4. **Accessibility**: The accounts are FDIC-insured, meaning that you can access your funds whenever needed, while still benefiting from the interest earned on the sweep account.
5. **Disclosure Statement**: For more information, you can view the Bank Deposit Program Disclosure Statement, which outlines the terms and conditions of the sweep program.

In essence, a Morgan Stanley sweep account is a convenient and interest-earning way to manage idle cash in your brokerage account, while ensuring liquidity and security.