T. Rowe Price does not offer a high yield savings account
T. Rowe Price is an investment management company, not a bank. They manage mutual funds, brokerage accounts, and retirement portfolios, but they do not hold deposit accounts or offer savings products. If you have cash sitting in a T. Rowe Price brokerage account, that money typically earns little to no interest—it sits in a money market fund or a sweep account that may pay a fraction of a percent.
This matters because if you are looking for a place to park cash and earn interest, T. Rowe Price is not the right place. You need a bank or credit union that offers a high yield savings account (HYSA)—an institution that takes deposits and pays interest on them. T. Rowe Price will not do either.
Key Takeaways
- T. Rowe Price manages investments but does not accept deposits or offer savings accounts of any kind.
- Cash held in a T. Rowe Price brokerage account typically earns minimal interest through a money market sweep.
- To earn meaningful interest on savings, you need to open an account at a bank or credit union that offers high yield savings products.
- Some brokerages partner with banks to offer high yield savings, but T. Rowe Price does not currently offer this feature.
How T. Rowe Price handles cash in your account
When you deposit money into a T. Rowe Price brokerage account and do not when ready invest it, the company automatically moves it into a money market sweep account. This is a holding tank—it keeps your cash safe and liquid while you decide what to buy. The sweep account is usually a money market fund managed by T. Rowe Price itself or a partner fund.
Money market funds are not the same as savings accounts. They invest in very short-term debt (Treasury bills, commercial paper, certificates of deposit) and aim to maintain a stable value of one dollar per share. The interest rate they pay fluctuates with the market and is typically lower than what a high yield savings account offers. In recent years, T. Rowe Price money market funds have paid between 0.01% and 0.50% APY, depending on market conditions and the specific fund.
You can see the current rate on your sweep account by logging into your T. Rowe Price account or calling their customer service line. The rate changes regularly and is not may provide.
What T. Rowe Price is designed for
T. Rowe Price is built for people who want to invest in mutual funds, stocks, bonds, and retirement accounts—not for people who want to save cash and earn interest. The company has been managing investment portfolios since 1937 and is known for its mutual funds and target-date retirement funds. If your goal is to invest money over time, T. Rowe Price is a legitimate choice. If your goal is to earn interest on cash, it is not.
This distinction matters because some people open a T. Rowe Price account thinking they can use it like a bank. They deposit money, see it earning a tiny amount of interest in the sweep account, and assume that is the best they can do. It is not. A high yield savings account at a bank will almost always pay more.
Where to find actual high yield savings accounts
High yield savings accounts are offered by online banks and some traditional banks. Online banks typically pay higher rates because they have lower overhead costs. As of early 2024, high yield savings accounts were paying between 4% and 5% APY, though rates change frequently and vary by institution.
You can open a high yield savings account at banks like Marcus, Ally, American Express Personal Savings, Wealthfront Cash Account, or many others. Credit unions also offer savings accounts, though rates vary. The key is to compare the current APY across a few options before you choose—rates change monthly, and the highest-paying account today may not be the highest-paying account next month.
If you already have money invested with T. Rowe Price and want to earn interest on your cash reserves, you would need to move that cash to a separate bank account. T. Rowe Price does not prevent you from doing this, but the company will not do it for you.
Why some brokerages offer high yield savings and T. Rowe Price does not
Some investment brokerages—including Fidelity, Charles Schwab, and Wealthfront—have partnered with banks to offer high yield savings accounts alongside their investment services. These partnerships allow customers to earn competitive interest rates on cash while keeping their money in one place. T. Rowe Price has not made this move.
The reason is partly business model. T. Rowe Price makes money primarily from investment management fees, not from banking services. Adding a high yield savings product would require partnerships with banks and additional regulatory oversight. The company has decided this is not a priority for its customer base, which is typically focused on long-term investing rather than cash management.
What to do if you have cash at T. Rowe Price
If you have uninvested cash sitting in a T. Rowe Price account, you have three options. First, you can invest it in T. Rowe Price mutual funds or other securities—this is what the account is designed for. Second, you can leave it in the money market sweep account and accept the low interest rate. Third, you can transfer the cash to a high yield savings account at a bank and keep your investments with T. Rowe Price.
The third option is what most people do if they want to earn meaningful interest on their cash reserves. You can maintain a T. Rowe Price brokerage account for investments and a separate high yield savings account for emergency funds or short-term savings. There is no rule against having accounts at multiple institutions.
Frequently Asked Questions
Can I earn interest on cash in my T. Rowe Price account?
Yes, but the rate is very low. Cash is automatically swept into a money market fund that typically pays between 0.01% and 0.50% APY. This is much less than a high yield savings account would pay. You can check your current sweep rate by logging into your account.
Does T. Rowe Price have a bank subsidiary?
No. T. Rowe Price is an investment management company, not a bank holding company. It does not own a bank and does not offer banking services like deposits or savings accounts.
Can I transfer money from T. Rowe Price to a high yield savings account?
Yes. You can withdraw cash from your T. Rowe Price account and deposit it into a high yield savings account at any bank. The process takes a few business days. T. Rowe Price will not charge you a fee for the withdrawal, though your bank may have its own transfer policies.
Is my money safe in the T. Rowe Price money market sweep?
Money market funds are generally safe, but they are not bank deposits and are not covered by FDIC insurance. They are regulated by the SEC and aim to maintain a stable value, but there is a small risk of loss. Cash in a high yield savings account at a bank is covered by FDIC insurance up to $250,000 per account holder.
What if I want to keep all my money in one place?
If you want both investment and savings services in one account, T. Rowe Price is not the right choice. Consider a brokerage like Fidelity or Charles Schwab, which offer high yield savings alongside investment accounts. Alternatively, keep your investments at T. Rowe Price and your savings at a separate bank.