SCHW · News · 20260808N

Sweep Cash Economics

SCHWAB CHARLES CORP · 2026-08-08 · Importance 41 · Surprise 42

Charles Schwab plans to move brokerage sweep cash from FDIC insurance to SIPC protection effective September 8, 2026. The transition is expected to improve Schwab’s economics by lowering borrowing costs, while the reported yield on uninvested cash remains 0.01% APY. SIPC coverage is described as more limited than FDIC insurance, particularly for larger customer balances.

Key facts

• Analysts said the SIPC move will improve Schwab's economics by lowering borrowing costs. source
• Uninvested sweep cash yields remain at 0.01% APY according to the report. source