Edward Jones does not offer a standalone high yield savings account

Edward Jones, the investment firm with offices in most U.S. towns, does not have a product called a high yield savings account. They offer sweep accounts — accounts that automatically move uninvested cash into money market funds or short-term bonds — but these are not the same thing as a high yield savings account from a bank.

If you have cash sitting in an Edward Jones account and want it to earn interest while you wait to invest it, that cash goes into a sweep product. The rate you earn depends on which sweep option your advisor sets up for you, and those rates change with the market. You do not get the fixed APY that a bank's high yield savings account advertises.

The distinction matters because high yield savings accounts are FDIC-insured up to $250,000 per depositor per bank, while Edward Jones sweep accounts are not FDIC-insured — they are invested in securities, which means they carry market risk and are protected by SIPC insurance instead.

Key Takeaways

  • Edward Jones uses sweep accounts to hold uninvested cash, not high yield savings accounts, and the rate you earn depends on market conditions rather than a fixed APY.
  • Sweep accounts at Edward Jones are not FDIC-insured; they are invested in money market funds or short-term securities and protected by SIPC coverage instead.
  • The rate your cash earns in a sweep account changes regularly and is not may provide, unlike a bank's high yield savings account with a published APY.
  • If you want FDIC-insured high yield savings with a fixed rate, you will need to open an account at a bank or online bank separate from Edward Jones.

How Edward Jones sweep accounts work

When you deposit cash into an Edward Jones brokerage account, your advisor chooses where that cash "sweeps" — usually into a money market fund or a short-term bond fund. The sweep happens automatically, so you do not have to move the money yourself. The goal is to keep your cash earning something while it waits to be invested in stocks, bonds, or mutual funds.

Edward Jones offers different sweep options depending on your account type and your advisor's recommendations. Some sweep into a money market mutual fund; others sweep into a cash management account that holds short-term securities. Your advisor controls which sweep option you are in, and you can ask them to change it, but you cannot straightforward choose the highest-yielding option on your own the way you can at a bank.

The rate you earn changes as the underlying investments change. If the money market fund holds bonds that mature or are sold, the new purchases may pay more or less. You will see the rate listed on your statements, but it is not locked in the way a bank's APY is.

Why Edward Jones is not the same as a high yield savings account

A high yield savings account at a bank — whether it is a traditional bank or an online bank — is a deposit account. Your money sits in the bank's vault (or its equivalent), and the bank pays you a fixed APY. That APY is published and does not change unless the bank announces a new rate. Your deposit is insured by the FDIC up to $250,000.

An Edward Jones sweep account is an investment account. Your cash is invested in securities — mutual funds, bonds, or other instruments — that fluctuate in value. The rate you earn is the return those securities generate, not a rate the firm guarantees. If the underlying investments lose value, your cash balance can go down. SIPC insurance protects you if Edward Jones fails, but it does not protect you from market losses in the way FDIC insurance protects a bank deposit.

Edward Jones also charges advisory fees on your account balance, which reduces your net return. A high yield savings account at a bank has no advisory fee — you earn the stated APY, minus nothing.

What rates Edward Jones sweep accounts currently pay

Edward Jones does not publish a single sweep rate the way a bank publishes an APY. The rate depends on which sweep option your account is in and what those underlying investments are earning at any given moment. You can ask your advisor what rate your sweep account is currently earning, and they can tell you, but that rate is not may provide and will change.

Because sweep rates are tied to market conditions and change frequently, comparing them to bank high yield savings rates is not straightforward. A bank might advertise 4.5% APY, which is locked in. An Edward Jones sweep account might be earning 4.2% today but 3.8% next month if interest rates fall or the underlying investments change.

If you want to know what your specific sweep account is earning right now, log into your Edward Jones account or call your advisor. Do not assume the rate will stay the same.

Where to get a true high yield savings account instead

If you want FDIC-insured savings with a fixed, published APY, you need to open an account at a bank or online bank. You can do this in addition to your Edward Jones brokerage account — they do not have to be connected.

Online banks like Marcus, Ally, American Express Personal Savings, and Discover typically offer higher APYs than traditional brick-and-mortar banks because they have lower overhead costs. You can compare current rates on financial websites that track APYs across institutions, though rates change frequently.

Some people keep a high yield savings account at a bank for emergency funds or money they know they will not invest, and keep a separate Edward Jones account for investments. This way you get the safety and fixed rate of FDIC insurance, plus the investment options Edward Jones provides.

What happens to your cash if you do not choose a sweep option

If you open an Edward Jones account and deposit cash but do not tell your advisor what to do with it, the firm will place it in a default sweep option. You do not have to actively choose — the sweep happens automatically. However, you should ask your advisor what that default is, because it may not be the option that works best for your situation.

Some default sweeps are more conservative (holding safer, lower-yielding investments), while others are more aggressive. If you want your uninvested cash to earn a specific rate or be held in a specific type of investment, tell your advisor. They can change your sweep option, though they may have recommendations based on your overall account strategy.

Frequently Asked Questions

Can I move money from Edward Jones to a high yield savings account?

Yes. You can withdraw cash from your Edward Jones account and deposit it into a bank high yield savings account. The withdrawal takes a few business days to settle, depending on how the money is invested. Once it arrives at the bank, it will be FDIC-insured and earn the bank's published APY.

Is the money in an Edward Jones sweep account safe?

Your money is protected by SIPC insurance if Edward Jones fails, but it is not FDIC-insured. Because sweep accounts hold securities, not deposits, they carry market risk — the value can go down. If you want may provide safety and a fixed rate, a bank high yield savings account is the right choice.

Can I choose which Edward Jones sweep option I want?

You can ask your advisor to move your cash into a different sweep option, but you cannot independently select from a menu the way you can at a bank. Your advisor may recommend a specific sweep based on your account and goals. If you want full control over your rate, you need a bank account.

What is the difference between a money market fund and a high yield savings account?

A money market fund is an investment that holds short-term bonds and securities; its value and return fluctuate. A high yield savings account is a bank deposit with a fixed APY and FDIC insurance. Money market funds are what Edward Jones sweep accounts typically hold. Banks offer high yield savings accounts.

Do I have to use Edward Jones for investing if I want to keep cash there?

No. You can open an Edward Jones account, deposit cash into a sweep account, and never invest in anything — the cash will earn whatever the sweep option pays. However, Edward Jones is designed for investing, and you may face account minimums or advisory fees that make it more expensive than straightforward keeping cash at a bank.