Do Brokerage Accounts Earn Interest?

Shawn Plummer

CEO, The Annuity Expert

One of the most common questions we hear from our clients is whether or not their brokerage account earns interest. Of course, the answer to this question depends on your account type and the firm you are working with. In this guide, we will discuss the different types of brokerage accounts and how they earn interest. We will also provide a few tips on how to maximize your earnings!

Do Brokerage Accounts Earn Interest?

If you’re considering opening a brokerage account, you might wonder whether these accounts earn interest. The short answer is: yes, brokerage accounts can earn interest.

But the amount of interest that a brokerage account earns will depend on the investments held within the account and the current interest rates. Some investments, like bonds, are designed to pay regular interest payments. Other investments, like stocks, don’t pay regular interest, but they may appreciate over time, which can provide a return through capital gains when the investment is sold.

It’s important to note that the value of investments can go up or down, and there is the potential for loss and gain. This is why it’s crucial to diversify your portfolio and consider your investments within your brokerage account.

One way to potentially increase the interest earned in your brokerage account is by choosing investments that have a higher interest rate. This could include high-yield savings accounts, money market funds, or CDs. These investments may offer a higher interest rate than a traditional savings account. Still, they also come with different risks and potential drawbacks, so it’s essential to research and understand the terms before making investment decisions.

In addition to earning interest from the investments held in your brokerage account, you may also earn interest on any cash balances you have within the account. Many brokerages offer interest-bearing cash accounts that allow you to earn a little interest on your cash.

Overall, brokerage accounts can be a valuable tool for building wealth and saving for the future. By choosing suitable investments and taking advantage of any interest-earning opportunities, you can maximize your returns and reach your financial goals more quickly. However, consider the risks carefully and do your due diligence before making investment decisions.

Earn The Highest Interest Rates On Savings Today

Fixed annuities are almost identical to Certificates of Deposit (CDs) accounts and provide higher interest rates and penalty-free withdrawals for income.

TermInsurance CompanyAPY
N/AMoney Market Account – Optimum Bank5.26%
N/AMoney Market Account – FVC Bank5.26%
N/ASavings Account – CloudBank 24/7 5.26%
12 MonthsBread Savings CD5.60%
48 MonthsClear Spring Fixed Annuity5.15%
5 YearsAthene Fixed Annuity5.30%
10 YearsEquitrust Fixed Annuity6.00%
*Fixed annuities are only for saving money to use in retirement.

Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. We aim to help you find the highest interest rates for your retirement savings. We may receive a small referral fee if you purchase something using a link in this guide.

Find And Compare The Highest Interest Rates

Find the highest interest rates for your savings, ranging from 3 months to 10 years, all in one place.

Next Steps

We hope this guide has provided some clarity on how your brokerage account earns interest. As we mentioned, the answer to this question depends on your account type and the firm you are working with. If you have any further questions or want assistance maximizing your earnings, please do not hesitate to contact us for a quote. We would be more than happy to help!

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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