Schwab To Transfer Small Clients' Money Market Accounts To Bank

Charles Schwab & Co. intends to transfer the money market accounts of its SchwabOne brokerage clients with less than $100,000 of combined assets to the FDIC-insured bank deposit sweep feature, which is a cash account within its new Schwab Bank. The account transfer planned for Oct. 27 will provide Schwab Bank with an infusion of funds for lending purposes, which generate more profit than managing cash accounts. "It is part of providing our bank affiliates with deposits," said Morrison Shafroth, a spokesman. Individual shareholders' cash balances invested in individual retirement accounts are exempt from the transfer. Schwab will stop offering the Schwab Money Market Fund, the Schwab Government Money Market Fund and the Schwab U.S. Treasury Money Fund as sweep feature choices for its individual shareholders with less than $100,000 of combined assets.