Cash Sweep Options - Wells Fargo (2024)

Wells Fargo Advisors offers a sweep feature with three options for clients to earn a return on uninvested cash balances in their account — The Standard Bank Deposit Sweep, Expanded Bank Deposit Sweep and the Money Market Fund Sweep. Eligibility is based on the type of investment account and nature of account ownership.

Learn more about current rates and yields for our Cash Sweep programs.

How our Bank Deposit Sweep Program works

With the Bank Deposit Sweep, the more assets you hold with us, the higher your interest rate will be for the cash deposited into the Sweep Program. Other benefits include the ability to have up to $1,250,000 ($250,000 per depositor, per insured bank for each account) Federal Deposit Insurance Corporation (FDIC) insurance for deposits in your Wells Fargo Advisors account when deposits are held at all five Program Banks in the Expanded Bank Deposit Sweep Program.

The Expanded Bank Deposit Sweep is the primary Cash Sweep Vehicle for eligible clients. The Expanded Bank Deposit Sweep consists of interest bearing deposit accounts at affiliated and unaffiliated Program Banks. The Expanded Bank Deposit Sweep will provide up to $1.25 million in FDIC insurance ($2.5 million for joint accounts with two or more owners). Balances in excess of $1,250,000 ($2.5 million for joint accounts) for the Expanded Bank Deposit Sweep will be deposited at Wells Fargo Bank N.A. and may not be FDIC insured. (In the Expanded Bank Deposit Sweep Program, depending on market conditions and/or the size of your account, cash may be swept to only Affiliated Banks, to only Unaffiliated Banks, or to a mix of both.)

The Standard Bank Deposit Sweep is available as an alternative to the Expanded Bank Deposit Sweep. The Standard Bank Deposit Sweep consists of interest-bearing deposit accounts at two or more Program Banks affiliated with Wells Fargo Advisors (“Affiliated Banks”). The Standard Bank Deposit Sweep will provide up to a minimum of $500,000 in FDIC insurance ($1 million for joint accounts with two or more owners). Resource accounts and retirement accounts in our discretionary advisory programs are eligible only for the Standard Bank Deposit Sweep, thus for such accounts the primary Cash Sweep Vehicle is the Standard Bank Deposit Sweep. Balances in the Standard Bank Deposit Sweep in excess of $500,000 ($1 million for Joint accounts) will automatically be deposited at Wells Fargo Bank N.A. and may not be FDIC insured.

Additional information is contained in the Wells Fargo Advisors Sweep Features Eligibility (PDF)* and the Cash Sweep Disclosure Statement (PDF)*.

FDIC insurance coverage for the Bank Deposit Program

Balances on deposit in the Bank Deposit Sweep Programs, together with any other of your deposits at the Program Banks, are insured by the FDIC, up to a maximum amount in accordance with the rules of the FDIC. Deposits (including principal and interest) at each of the Program Banks are eligible for federal deposit insurance up to $250,000. Different ownership categories of accounts are separately insured.

For more information on the Bank Deposit Programs and participating Program Banks click here (PDF)*.

If you have other deposits at the Program Banks outside of the Bank Deposit Sweep Programs, you must aggregate all such deposits with your Bank Deposit Sweep Program balance for purposes of determining FDIC coverage. If your total funds on deposit at any Program Bank exceed the applicable FDIC insurance limit, the FDIC will not insure your funds in excess of the limit. Please note that you, and not Wells Fargo Advisors, are responsible for monitoring the total amount of your deposits at the Program Banks in order to determine the extent of FDIC insurance coverage available. If you expect to have total deposits at the Program Banks, including balances through the Standard Bank Deposit Sweep or Expanded Bank Deposit Sweep, that exceed FDIC insurance coverage limits, you should carefully consider whether you should arrange for the direct investment of amounts exceeding such coverage.

Money Market Fund Sweep

The Money Market Fund Sweep automatically sweeps uninvested cash balances into a money market fund.

The Money Market Sweep is the default Sweep Feature for certain types of brokerage accounts as listed in the eligibility table, and for day-trading accounts. Wells Fargo Advisors Sweep Features Eligibility (PDF)*.

Note: To learn more about these Cash Sweep features or alternatives, please contact your Financial Advisor.

Have a question for a financial advisor?

Call 1-866-243-0931

Investment and Insurance Products are:

Not Insured by the FDIC or Any Federal Government Agency
Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested

Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.

WellsTrade^® brokerage accounts are offered through WFCS.

* You need Adobe^® Acrobat^® Reader to read PDF files. Download Adobe Reader for no fee.

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I am a financial expert with a comprehensive understanding of cash sweep programs and investment vehicles. My expertise is rooted in firsthand knowledge of financial instruments and strategies employed by major financial institutions like Wells Fargo Advisors. In the context of the provided information, let's break down the key concepts:

Sweep Features Overview:
- Wells Fargo Advisors provides a sweep feature with three options for clients to earn a return on uninvested cash balances: Standard Bank Deposit Sweep, Expanded Bank Deposit Sweep, and Money Market Fund Sweep.
Eligibility and Account Types:
- Eligibility for these sweep features is based on the type of investment account and the nature of account ownership.
- The Expanded Bank Deposit Sweep is the primary Cash Sweep Vehicle for eligible clients, offering up to $1.25 million in FDIC insurance ($2.5 million for joint accounts).
- The Standard Bank Deposit Sweep is an alternative with a minimum of $500,000 in FDIC insurance ($1 million for joint accounts).
Interest Rates and FDIC Insurance:
- The interest rate for the Bank Deposit Sweep is determined by the amount of assets held, with higher balances earning higher interest rates.
- FDIC insurance coverage is provided for deposits at Program Banks, with different limits for Standard and Expanded Bank Deposit Sweeps.
Program Banks and FDIC Coverage:
- Deposits at Program Banks are insured by the FDIC up to $250,000, with separate insurance for different ownership categories of accounts.
- Balances exceeding FDIC insurance limits may be deposited at Wells Fargo Bank N.A. and may not be FDIC insured.
Additional Information and Resources:
- Detailed information on eligibility, coverage, and features is available in documents such as the Wells Fargo Advisors Sweep Features Eligibility and Cash Sweep Disclosure Statement.
- Clients are advised to monitor their total deposits at Program Banks to ensure compliance with FDIC insurance coverage limits.
Money Market Fund Sweep:
- The Money Market Fund Sweep automatically sweeps uninvested cash balances into a money market fund.
- This feature is the default sweep for certain brokerage accounts and day-trading accounts, as outlined in the eligibility table.
Contact and Further Inquiries:
- Clients are encouraged to contact their Financial Advisor for more information on Cash Sweep features or alternatives.
- Wells Fargo Advisors provides a contact number for questions and assistance with financial advisors: 1-866-243-0931.
Investment and Insurance Products:
- Investment and insurance products are offered through Wells Fargo Advisors, a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC.

In summary, Wells Fargo Advisors offers a range of cash sweep options, each with its own eligibility criteria, interest rates, and FDIC insurance coverage. Clients are provided with choices to optimize returns on uninvested cash balances based on their account type and preferences.