How to move it
How to move your cash out of Charles Schwab’s default sweep
Charles Schwab pays 0.01% on uninvested cash by default (checked October 22, 2026). You don’t need a new account to fix that: two trades inside the account you already have do it.
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.
- Open Trade and choose Bonds. Accept the fixed income disclosures the first time.
- On the Find Bonds & Fixed Income page, choose Treasury Auctions.
- Pick a bill (a 4-, 13- or 26-week bill is typical for cash) and select Buy.
- Enter the dollar amount, and set Auto-Rollover to Yes so it reinvests at maturity. Schwab offers this only on Treasuries bought at auction.
- Select Review, then place the order. The cash leaves your account on the issue date.
Steps checked against Charles Schwab’s own help pages on October 27, 2026.
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.
- Search the fund’s ticker in the trade screen and choose Buy. At this firm: a Schwab money market fund (we list SWVXX), or a Treasury-only money fund if you're in a high-tax state.
- Enter a dollar amount. Check the fund’s minimum and whether the firm charges a fee to buy it.
- Ask whether it can be your default cash (“core” or “sweep”) option, so new deposits land there automatically. Some firms allow it; many don’t.
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.
Charles Schwab’s own help pages
General information, not investment advice. Rates and menus change; confirm with Charles Schwab before you trade. See what Charles Schwab’s cash rate has cost you so far →