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## Is Your Financial Advisor Benefiting From Your Unused Funds With Poor Rates?
Financial advisors might be making a fortune off the non-invested funds residing in your investment account, and you know what? They’re probably retaining the majority of the gains for themselves.
Presently, financial advisors and financial institutions are under scrutiny for their cash sweep schemes. The Securities and Exchange Commission is conducting inquiries, and clients are initiating group legal actions.
Thus, precisely how do financial advisors gain from your inactive funds? And what measures can you take to secure a superior yield on your deposits?
### Key Insights
* Financial advisors frequently transfer uninvested funds from your investment account into bank accounts.
* Financial institutions typically retain the largest portion of the cash returns.
* Certain financial advisors could be amassing ten times the profit you could be earning on your inactive funds.
* Investors might contemplate actively investing their cash balances in high-yield savings accounts or certificates of deposit (CDs) for improved returns.
## What Average Payments Do Financial Advisors Provide on Swept Funds? Toncoin (TON) Value Forecast for March 26th
Financial advisors can move your uninvested funds from your investment account into higher-interest accounts. Although you should profit from the increased interest, there’s escalating worry that financial advisors are keeping most of the returns for themselves.
In 2025, the Securities and Exchange Commission penalized Wells Fargo Advisors and Merrill Lynch \$60 million for not prioritizing their clients’ best interests when selecting cash sweep program choices.
Based on Bloomberg Law’s analysis, other financial advisors are confronting class-action lawsuits alleging that clients incurred billions in losses due to the low interest rates offered by financial institutions and investment companies.
## How Much Do Financial Advisors Earn From These Deposits?
Cash sweep programs are exceedingly lucrative for financial advisory firms.
Heres the situation: frequently, if you possess a trading account, any funds you have not put into investments simply remain idle. To enable those funds to be beneficial for you, brokerage establishments typically shift them automatically into something referred to as a “sweep account.” Consider it to be akin to a short-term holding place for your funds where it accumulates a small amount of revenue.
However, here is the problem. Although you, the client, receive some revenue, the brokerage establishment also claims a percentage. At times, they could even retain a larger portion of the revenue than you obtain! Therefore, your funds are producing revenue for them, perhaps exceeding the revenue it is producing for you.
