SCHW · News · 20260808N

Brokerage Sweep Protection Change

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

Charles Schwab plans to move brokerage sweep cash from FDIC insurance to SIPC protection beginning September 8, 2026. The change would reduce coverage for some larger cash balances because SIPC protection is more limited and is not equivalent to FDIC insurance. Analysts said the transition could lower Schwab’s borrowing costs and improve its economics, while customer yields remain 0.01% APY and investors receive no stated benefit from the change.

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