Morgan Stanley’s Bank Deposit Program is an investment vehicle used to hold cash balances while awaiting reinvestment.
Idle funds held in account(s) at Morgan Stanley are automatically deposited by MSSB (Morgan Stanley Smith barney LLC) into FDIC-insured accounts complete with interest.
The accounts these funds funnel into are held by either Morgan Stanley Bank and/or Morgan Stanley Private Bank. Both are member FDIC and funds are insured up to the applicable limits for individual and joint accounts.
The APYs paid on these accounts are tiered based on balance amount.
The tiers are as follows:
- $0 – $99,999.99
- $100k – $249,999.99
- $250k – $499,999.99
- $500k – $999,999.99
- $1m – $1,999,999.99
- $2m and above
Currently, all tiers earn the same APY, however as interest rates rise you can expect this to change with higher balances earning more attractive yields.
The Bank Deposit Program is the default sweep option unless the account is ineligible to participate in the Bank Deposit Program. Morgan Stanley provides a couple alternate funds in which free credit balances can be swept into, if you’re ineligible for the Bank Deposit Program.
To view Morgan Stanley’s current APYs for their Bank Deposit Program and alternate funds, continue reading our review below.
Morgan Stanley Bank Deposit Program APYs
The yields below are accurate as of the time of this publishing. To give these yields some context, the current national average for a money market account and an interest checking account sit at 0.33% APY and 0.06% APY, respectively, according to recent FDIC data.
| Deposit Range | APY |
| $0 – $99,999.99 | 0.01% |
| $100k – $249,999.99 | 0.01% |
| $250k – $499,999.99 | 0.01% |
| $500k – $999,999.99 | 0.05% |
| $1m – $1,999,999.99 | 0.15% |
| $2m – $4,999,999.99 | 0.30% |
| $5m – $9,999,999.99 | 0.50% |
| $10m + | 0.50% |
If the account is ineligible for Morgan Stanley’s Bank Deposit Program outlined above, then balances in the account will be swept into one of Morgan Stanley’s alternate funds.
Also note that balances above $20 million will be swept to the MGPXX fund. More info on that fund below.
Morgan Stanley Domestic Money Market Sweep Fund and Yield
If your account is ineligible for the Bank Deposit Program, Morgan Stanley’s Domestic Money Market Sweep Fund may still be available to you. The yields shown below are not traditional annual percentage yields, but rather 7 day yields.
We should also note that funds held in these accounts are not insured by the FDIC.
Unlike traditional money market accounts held at banks or credit unions, it is possible to lose money with the funds above.
Per Morgan Stanley’s fine print (found here):
“Depending upon the type of money market fund in which you invest, a fee may be imposed upon sale of your shares or the Fund may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.“
Morgan Stanley Offshore Money Market Sweep Fund + Yield
Similar to the Domestic Money Market Sweep Fund Morgan Stanley offers, the Offshore Money Market Fund Sweep Fund also quotes their yields in 7 day terms. This product is not available in the US or to US citizens.
| Fund Name | Internal Fund Symbol | 7-Day Yield |
| CAYMAN SWEEP FUND | AAGS | 3.93% |
Unlike the fund symbols associated with Morgan Stanley’s domestic money market options, the Cayman Sweep Fund is an internal product that can not be looked up publicly.
FAQ
Still have questions about Morgan Stanley’s deposit accounts? See what other consumers are asking as well as our responses below.
Does Morgan Stanley Offer CDs (certificates of deposit)?
No. As of January 2023 Morgan Stanley does not offer CDs for consumers.
What are Morgan Stanley’s CD Rates?
Morgan Stanley does not offer CDs at this time.
Is Morgan Stanley FDIC insured?
Not themselves, but their partner banks are. Cash balances are swept into deposit accounts offered by participating banks in Morgan Stanley’s Bank Deposit Program. All participating banks are FDIC-insured.
