Does Ameritrade give Interest on Balance? I search their entire site and couldn't find this information. I know FreeTrade does not give interest on unused Balance. I know Datek gave interest before it got bought by Ameritrade. Does anyone know the answer? And where on it's web site it shows this? Thanks!
From Ameritrade's Website (Site Map & Getting Started/FAQ): Interest on Cash Balances As a benefit to our clients, Ameritrade pays interest on credit balances over $25,000 in your account. Simple interest is calculated on the entire daily balance and is credited to your account monthly. We pay interest daily on all free credit balances of $25,000 or more that are being held for future investment. (Wisconsin residents cannot earn interest.)
I established a "Reserve Fund" at AT into which my cash sweeps into each night on which I earn a return on the balance. This does not require a balance of as much as $25000 to earn a return. However, the returns earned in our current low interest environment are almost nothing and are not worth the trouble of setting up the Reserve Fund at this time.