SwitchWize Research Desk: WS4 Snapshot
The MPS Premium in the US: A Point-in-Time Snapshot
Today's median default brokerage sweep rate is 0.03%, versus a top tracked high-yield savings rate of 4.20% and an effective Federal Funds rate of 3.63%. This is a snapshot for one day, not a pass-through or beta study.
Last reviewed August 26, 2026 · SwitchWize Research Desk
What this is, and isn't
Basten, Cucic & Schepens (2026), using Danish data linking deposit accounts to full investment portfolios, found that households holding market-priced savings (stocks, bonds, fund shares) receive 8.4 percentage points more pass-through of policy rate changes than otherwise identical non-holders. Sweep customers hold market-priced assets by construction, making brokerage sweep cash the closest US analogue available.
Testing whether that pattern holds in the US needs a real time series across an actual Fed rate move. That series does not exist yet: sweep_rate_observations, the table now persisting this data daily, has no history before 2026-08-26. This page is what can be said honestly today, a single-day snapshot, not a pass-through or beta estimate.
Today's three reference points
Median default sweep rate
0.03%
6 of 13 firms
Top tracked HYSA
4.20%
Live, via getLiveRates()
Effective Fed Funds rate
3.63%
FRED, most recent monthly reading
Every qualifying firm, not just the median
The median understates how wide the spread actually is firm to firm. Sorted lowest to highest.
| Firm | Default sweep rate | Gap vs. top HYSA |
|---|---|---|
| RBC Wealth Management | 0.01% | 4.19pp |
| Merrill (Bank of America) | 0.01% | 4.19pp |
| UBS | 0.03% | 4.17pp |
| Ameriprise Financial | 0.03% | 4.17pp |
| Edward Jones | 0.10% | 4.10pp |
| Fidelity | 1.84% | 2.36pp |
The same-firm comparison, not just cross-firm
The starkest version of this gap isn't between institutions, it's within one. Merrill and UBS both offer a materially higher-paying cash option inside the same brokerage account, no new institution required.
Merrill: default sweep (Tier 1 (Less than $250,000)): 0.01%
Merrill: same-account premium option (Less than $100,000): 2.89%
UBS: default sweep (Less than $250,000): 0.03%
UBS: same-account premium option (Less than $250,000): 3.15%
What would make this a real pass-through study
Per the pre-registered research design, that analysis waits until sweep_rate_observations spans at least one real Federal Reserve policy move and 90+ days of daily history. Nothing on this page should be read as a pass-through or beta finding before then.
How to cite this
SwitchWize, "The MPS Premium in the US: A Point-in-Time Snapshot." Retrieved from https://www.switchwize.com/research/mps-premium-snapshot.
View the research design and full datasetEducational information, not personalized financial advice. Rates are illustrative of current market conditions and should be confirmed with the provider.