How to move your cash out of Morgan Stanley’s default sweep

Option 1: Treasury bills, bought at auction

Backed by the U.S. government and free of state income tax. Usually the most you can keep in a high-tax state, and with automatic rollover it runs on its own. New to them? Read the full Treasury bill guide.

At Morgan Stanley, an advisor usually places these for you. Use the email below.

Option 2: A money market fund

The simplest switch: one trade, and the money is usually available the next business day. Not FDIC-insured, but government and Treasury funds hold only government debt.

Ask for a government money fund such as MGPXX, or rolling Treasury bills. Full-service firms sometimes charge to buy a fund, so ask about fees first.

Ask your advisor: copy this email

Hi,

My cash in my Morgan Stanley account is earning 0.01% in the default sweep. I'd like the cash I won't need in the next few weeks moved into rolling Treasury bills or a Treasury money market fund.

Could you tell me:
1. Which of those I can hold in my account, and their current yields
2. Whether any fee applies to buying or holding them
3. Whether my advisory fee is charged on cash

Please keep enough in the sweep to cover my bills and planned purchases.

Thanks

Before you move it

• Leave enough in the sweep for bills, transfers and trades you have coming up.
• T-bills pay their full yield if held to maturity. Sold early, they get the market price, which can be a little more or less.
• Money market funds aren’t FDIC-insured; the sweep usually is. Treasury bills are backed by the U.S. government.
• In an advisory account, ask whether the advisory fee is charged on cash. A 1% fee on cash earning little can cost more than it earns.
• Prefer not to use the broker? TreasuryDirect sells bills directly, with an automatic reinvest option.

General information, not investment advice. Rates and menus change; confirm with Morgan Stanley before you trade. See what Morgan Stanley’s cash rate has cost you so far →