Edward Jones does offer savings accounts, but they're not the main focus of the firm
Edward Jones, the investment brokerage with offices in most U.S. towns, does have savings products available through their platform. However, Edward Jones is primarily a full-service investment firm, not a bank. Their savings accounts are typically offered through partner banks rather than issued directly by Edward Jones itself. This matters because it affects where your money sits, who insures it, and what interest rates you'll actually earn.
The savings accounts Edward Jones offers are usually money market accounts or sweep accounts tied to your brokerage account. A sweep account automatically moves uninvested cash from your brokerage into a savings vehicle that earns interest. The specific bank partner and interest rate depend on which Edward Jones office you work with and what type of account you hold.
If you're looking for a standalone savings account with no investment component, Edward Jones is not the right place. You'd be better served by a bank or credit union. But if you already have a brokerage account with Edward Jones and want to park cash safely while earning some interest, their sweep options are worth understanding.
Key Takeaways
- Edward Jones offers savings products through partner banks, not as a direct issuer, so your deposits are insured by the FDIC through the partner bank.
- Most Edward Jones savings options are money market accounts or sweep accounts tied to a brokerage account, not standalone savings accounts.
- Interest rates on Edward Jones savings products vary by partner bank and account type, and are typically lower than rates at online banks.
- You'll need an existing Edward Jones brokerage account to open a sweep account; you cannot open a savings account with Edward Jones alone.
- Edward Jones charges advisory fees on brokerage accounts, which may reduce the net benefit of holding cash in their savings products.
How Edward Jones sweep accounts work
When you open a brokerage account with Edward Jones, any cash you deposit that isn't invested in stocks, bonds, or mutual funds sits in a default sweep account. This cash automatically moves into a money market account at a partner bank, where it earns interest. You don't have to do anything—the sweep happens behind the scenes.
The partner bank changes depending on your account type and your Edward Jones office location. Common partners include banks like Fidelity Bank, Pershing Bank, or other regional institutions. Your deposits are insured up to $250,000 per depositor per bank under FDIC protection, which is the same coverage you'd get at any bank.
The interest rate you earn depends on the partner bank's current rates and the type of money market account. These rates are typically lower than what online banks offer for savings accounts, sometimes by 1 to 2 percentage points. Edward Jones does not set the rate—the partner bank does—so you'll want to ask your financial advisor what the current rate is before you deposit large amounts of cash.
Interest rates and fees to expect
Edward Jones does not publish a standard interest rate for savings products because rates vary by partner bank and change frequently. You'll need to contact your local Edward Jones office to find out what rate you'd earn on a sweep account right now. Rates have historically been competitive with traditional banks but lag behind online savings accounts.
Beyond the interest rate, you may also pay advisory fees on your brokerage account itself. Edward Jones typically charges a percentage of assets under management, which can range from 0.5% to 1.5% depending on your account size and the services you use. This fee applies to your entire account balance, including cash in the sweep account. That means even though your cash is earning interest, the advisory fee reduces your net return.
If you're holding a large amount of cash in an Edward Jones sweep account, compare the interest rate minus the advisory fee against what you'd earn at an online bank with no fees. The math often favors moving cash to a separate online savings account if you're not actively investing the rest of your portfolio.
FDIC insurance and account protection
Money in an Edward Jones sweep account is insured by the FDIC through the partner bank, not by Edward Jones itself. This is important: Edward Jones is a brokerage, not a bank, so they don't hold your deposits directly. The partner bank does, and that bank carries the FDIC insurance.
Your coverage limit is $250,000 per depositor per bank. If you have $200,000 in a sweep account at Fidelity Bank and $100,000 in a separate Fidelity Bank savings account outside Edward Jones, your total coverage at that bank is $250,000—meaning $50,000 would not be insured. The FDIC counts all deposits you hold at the same bank under the same ownership, regardless of where you opened them.
If you have multiple Edward Jones accounts or accounts at different partner banks, each relationship with each bank is insured separately up to $250,000. Ask your Edward Jones advisor which bank your sweep account uses so you can track your total exposure at that institution.
Comparing Edward Jones savings to other options
Edward Jones sweep accounts make sense if you're already a client with an active brokerage account and you want a simple place to park uninvested cash. You don't have to open a separate account or manage multiple logins. The money earns interest automatically.
However, if your only goal is to save money and earn interest, online banks and credit unions typically offer higher rates with no advisory fees. As of recent years, online savings accounts have paid 4% to 5% APY, while Edward Jones sweep accounts have paid closer to 2% to 3% APY. Over time, that difference compounds significantly.
A hybrid approach works for many people: keep a small amount of cash in your Edward Jones sweep account for convenience, and move larger savings to an online bank for better rates. This way you're not paying advisory fees on cash you're not actively investing, and you're earning more interest on your savings.
How to open or access a sweep account at Edward Jones
You cannot open a savings account directly with Edward Jones. You must first open a brokerage account. Once you have a brokerage account, the sweep account is automatic—any uninvested cash goes into it by default.
To open a brokerage account with Edward Jones, you'll visit a local office or call their main line to speak with a financial advisor. You'll need to provide personal information, verify your identity, and fund the account with an initial deposit. The advisor will explain the sweep options available to you and answer questions about current interest rates.
If you already have an Edward Jones brokerage account, your sweep account is already set up. You can see your sweep account balance and current interest rate in your online account portal or by calling your advisor. If you want to move cash out of the sweep account into investments or to another bank, you can request a transfer through your account dashboard or by contacting your advisor.
When Edward Jones savings accounts make sense
Edward Jones sweep accounts are most useful if you're a long-term investor who holds a diversified portfolio with the firm and occasionally has cash on hand between investments. The convenience of automatic sweeping and FDIC insurance makes it a low-friction place to keep money safe while you decide what to invest in next.
They're less useful if you're primarily a saver rather than an investor, or if you have a large amount of cash you want to keep earning interest without paying advisory fees. In those cases, an online bank or credit union savings account will serve you better.
Edward Jones also makes sense if you value having a personal financial advisor you can call with questions. The advisory relationship comes with a cost, but some people find the guidance worth it. If you're paying for that advice anyway, using the sweep account is a natural extension of the relationship.
Frequently Asked Questions
Can I earn interest on cash in my Edward Jones account without opening a sweep account?
No. Any uninvested cash in your Edward Jones brokerage account automatically goes into a sweep account by default. You cannot opt out of the sweep, though you can transfer cash out to another bank if you prefer. The sweep is designed to ensure your cash earns something rather than sitting idle.
What happens to my sweep account if Edward Jones goes out of business?
Your deposits are protected by FDIC insurance through the partner bank, not by Edward Jones. Even if Edward Jones failed, your money would remain insured and accessible through the partner bank. The FDIC may provide is separate from the brokerage's financial health.
Can I move money from my Edward Jones sweep account to another bank?
Yes. You can request a transfer from your sweep account to an external bank account through your Edward Jones online portal or by calling your advisor. Transfers typically take three to five business days. There are no penalties for moving money out of the sweep account.
Do I have to keep a minimum balance in my Edward Jones sweep account?
Minimum balance requirements vary by partner bank and account type. Some sweep accounts have no minimum, while others may require $1,000 or more. Ask your Edward Jones advisor about the specific requirements for your account before you open it.
Is the interest I earn on my Edward Jones sweep account taxable?
Yes. Interest earned on a sweep account is ordinary income and must be reported on your tax return. Edward Jones will send you a 1099-INT form at the end of the year showing how much interest you earned. This is the same tax treatment as interest from any bank savings account.