Are You Getting The Best Interest Rate Available At Your Bank Or Brokerage Firm?

Silver Law Group is investigating major banks and financial institutions for potentially failing to provide competitive interest rates on cash balances in brokerage and advisory accounts. Over the past few years of high-interest rates, while customers earned minuscule returns, some banks earned billions on customers’ cash balances. If you believe you are a victim of this misconduct, contact us at (800) 975-4345 or ssilver@silverlaw.com.

The Issue With Low-Interest-Bearing Accounts

Many banks that offer brokerage and advisory services offer “Cash Sweep” programs to roll customers’ uninvested funds into interest-bearing accounts. However, a concerning trend has emerged: banks appear to be paying customers extremely low interest rates while retaining the bulk of the earnings. This has allowed these firms to capitalize on the high-interest rate environment while paying accountholders less than 1%, in some cases.

Moreover, banks and brokerage firms earn various other fees and service charges on these accounts. This multi-layered approach significantly impacts customers’ potential earnings while boosting the banks’ bottom line.

In a recent lawsuit against Morgan Stanley, plaintiffs alleged that the bank paid only 0.01% to 0.5% interest on cash in advisory and brokerage accounts, compared to 4.7% elsewhere. This practice allows banks to significantly increase their income at the expense of their customers.

Similar complaints have been filed against other major financial institutions including Ameriprise, Wells Fargo, and LPL Financial. Silver Law Group encourages customers to review their interest rates carefully.

Banks And Brokerage Houses May Have Violated Common Law And Regulatory Requirements

Under Regulation Best Interest (Reg BI), brokerage firms and investment advisors have a duty to act in their customers’ best interests. This obligation extends to banks providing brokerage and investment advisory services.

The extremely low interest rates offered by these institutions may constitute a violation of their fiduciary duties, as they appear to prioritize corporate profits over customer benefits.

Have You Been Earning Significantly Less Than You Should On Your Cash Balance?

If you believe you’ve been affected by this misconduct, we urge you to contact us. Silver Law Group is investigating potential claims to help recover losses for affected individuals.

Contact us today at (800) 975-4345 or email ssilver@silverlaw.com to learn more about your options. We handle cases on a contingency fee basis—you pay nothing unless and until we recover money for you.

Take action now to ensure your financial interests are protected!