Updated October 23, 2026 from live rates
Is your brokerage cash sweep costing you? Sweep vs money market vs T-bills
At today's rates, 3-month T-bill keeps more after tax in all 9 tax scenarios below, by about $1,355 to $1,634 a year on $500,000. The Merrill sweep keeps $13,261 to $16,003 a year less than the best.
After-tax yield by tax situation
Yield you keep after federal and state income tax, at today's rates. The last column is the yearly gap between the best and second-best on $500,000. The 3.8% net investment income tax is left out; it lowers every taxable option by the same share.
| Federal bracket, state tax | Merrill sweep | Treasury fund | 3-month T-bill | Yearly gap |
|---|---|---|---|---|
| 24%, no state tax | 0.01% | 2.88% | 3.21% | $1,634 |
| 24%, 5% state | 0.01% | 2.88% | 3.21% | $1,634 |
| 24%, 9.3% state | 0.01% | 2.88% | 3.21% | $1,634 |
| 32%, no state tax | 0.01% | 2.58% | 2.87% | $1,462 |
| 32%, 5% state | 0.01% | 2.58% | 2.87% | $1,462 |
| 32%, 9.3% state | 0.01% | 2.58% | 2.87% | $1,462 |
| 37%, no state tax | 0.01% | 2.39% | 2.66% | $1,355 |
| 37%, 5% state | 0.01% | 2.39% | 2.66% | $1,355 |
| 37%, 9.3% state | 0.01% | 2.39% | 2.66% | $1,355 |
What's different
| Merrill sweep | Treasury fund | 3-month T-bill | |
|---|---|---|---|
| What it is | Merrill EdgeMerrill Lynch Bank Deposit Program | Treasury-only money fundFSIXX, Fidelity Treasury Only Portfolio, on Merrill | 3-month Treasury billBought at auction or in your brokerage, held to maturity |
| Rate today | 0.01%Under $1M; 0.05% from $1MVerified October 20, 2026 | 3.79%7-day yieldVerified October 20, 2026 | 4.22%Par yield, held to maturityVerified October 23, 2026 |
| Getting your money | Same day | Next business day | Matures in 3 months; can be sold any day at market price |
| Protection | FDIC-insured at Bank of America (limits apply) | Money market fund, not FDIC-insured | Backed by the U.S. government |
| State income tax | Fully taxable | Exempt | Exempt |
Many full-service and some self-directed brokers sweep idle cash into a bank deposit paying close to nothing by default. You can usually buy a money market fund or Treasury bills in the same account in a few clicks. Merrill Edge is shown here; our broker pages show the same comparison for 16 brokers.
Cash intelligence
We'll watch your cash, so you don't have to.
Every business day we re-check every rate against your balance and tax settings. You hear from us only when something changes what you'd keep.
- Only when it matters. No newsletter on quiet weeks; at most one short note a quarter to say all is well.
- About your money, in dollars. Not "rates fell", but what it means for your balance after tax.
- Private by design. A rounded balance and your tax settings. Never account numbers or logins. Never sold.