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 works1:
- Automated Deposit: Morgan Stanley sweeps excess funds from your brokerage account into a bank deposit account, ensuring that idle cash earns interest.
- Interest-Bearing: The deposited funds earn interest, which is higher than what you might receive on a standard savings account.
- FDIC Insurance: The deposits are insured by the Federal Deposit Insurance Corporation (FDIC), providing an additional layer of security for your funds.
- 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.
- Disclosure Statement: For more information, you can view the Bank Deposit Program Disclosure Statement, which outlines the terms and conditions of the sweep program12.
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.
6/5/2025 10:35pm
