|
Post by Capital on Jun 22, 2022 11:30:08 GMT
FYI just noticed this morning that the FDIC interest rate has increased from 25bp to 69pb.
|
|
|
Post by anitya on Jun 22, 2022 16:58:32 GMT
I do not understand why Schwab and TD continue to offer 0.01% interest on their sweep account, which is bank deposit. I had to buy into their money market account.
|
|
|
Post by roi2020 on Jun 23, 2022 4:30:35 GMT
I do not understand why Schwab and TD continue to offer 0.01% interest on their sweep account, which is bank deposit. I had to buy into their money market account. The Schwab Intelligent Portfolios robo-advisor program recommended participants invest 6% to 29.4% of their portfolios in cash. “Schwab claimed that the amount of cash in its robo-adviser portfolios was decided by sophisticated economic algorithms meant to optimize its clients’ returns when in reality it was decided by how much money the company wanted to make,” Gurbir S. Grewal, director of the SEC’s division of enforcement, said in a statement. “Schwab’s conduct was egregious and today’s action sends a clear message to advisers that they need to be transparent with clients about hidden fees and how such fees affect clients’ returns.” Schwab will pay a $187M fine (without admitting any wrongdoing) to resolve the SEC charges. Link
|
|
|
Post by Capital on Jun 24, 2022 12:31:07 GMT
Schwab is also the bank internally. Fidelity is not a bank. At Fidelity your funds are held in program banks. Even though it looks and feels like a single account, Fidelity places no more than $245k of your funds in any one of the program banks.
|
|
|
Post by anitya on Jun 29, 2022 22:20:27 GMT
When you guys deposit a check at a Fidelity branch, what has been your experience in how soon you see that check reflected in your account? I am hoping within a few minutes so you can trade or otherwise buy mutual funds. Please share your experiences and tricks. (I do not do mobile Apps for financial institutions - may be at some point I need to get into Mobile way of doing financial transactions.)
The check would be deposited in a taxable brokerage account (no cash management account).
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Jun 29, 2022 23:58:21 GMT
When you guys deposit a check at a Fidelity branch, what has been your experience in how soon you see that check reflected in your account? I am hoping within a few minutes so you can trade or otherwise buy mutual funds. Please share your experiences and tricks. (I do not do mobile Apps for financial institutions - may be at some point I need to get into Mobile way of doing financial transactions.) The check would be deposited in a taxable brokerage account (no cash management account). Best to ask at the local branch. A hold may relate to the size of the check, source, or if it's a brokerage margin account.
|
|
|
Post by Capital on Jul 2, 2022 16:35:56 GMT
|
|
|
Post by anitya on Jul 2, 2022 19:40:26 GMT
Hi Capital, If I do not care about FDIC insurance, what other benefits does a Cash Management Account provide that a regular brokerage account does not? Thanks.
|
|
|
Post by Capital on Jul 2, 2022 20:17:34 GMT
Hi Capital , If I do not care about FDIC insurance, what other benefits does a Cash Management Account provide that a regular brokerage account does not? Thanks. anitya, I use the Cash Management Account as my checkbook. It is a normal brokerage account that uses the FDIC option as its core account. For me this account is my spending account. My Brokerage Account is a part of my Retirement Assets. I guess I use it a part of my bucket system. The link below is a comparison of accounts at Fidelity. www.fidelity.com/cash-management/features-by-account
|
|
|
Post by Capital on Jul 22, 2022 14:46:41 GMT
FYI the interest rate has been increased to 82pb.
|
|
|
Post by Capital on Aug 2, 2022 10:00:58 GMT
FYI the interest rate has been increased to 120pb.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Aug 2, 2022 10:34:29 GMT
My Fidelity sweep is SPAXX - US money market fund - and is automatic. Is there a better option for a sweep account at fidelity?
|
|
|
Post by fishingrod on Aug 2, 2022 10:54:53 GMT
What are the investment options for my core position? Non-retirement accounts Fidelity Government Money Market Fund (SPAXX), a taxable money market mutual fund investing in U.S. Government Agency and Treasury debt, and related repurchase agreements. Intended for investors seeking as high a level of current income as is consistent with the preservation of capital and liquidity.1,2 Fidelity Treasury Fund (FZFXX), a taxable money market mutual fund investing in U.S. Treasury securities and related repurchase agreements. Intended for investors seeking as high a level of current income as is consistent with the preservation of capital and liquidity.1,3 Taxable Interest Bearing Cash Option (FCASH), a free credit balance and is payable to you on demand by Fidelity. Fidelity may use this free credit balance in connection with its business, subject to applicable law. Fidelity may pay you interest on this free credit balance, and this interest will be based on a schedule set by Fidelity, which may change from time to time. As of July 18, 2022, the interest rate for this option is 0.82%. Generally speaking, these are the options available to you at the time you open your account. However, certain types of accounts may offer different options from those listed here. Please keep in mind that once your account has been established, you can change your core position to any other option that Fidelity might make available for that purpose.4 Retirement accounts Fidelity Government Money Market Fund (SPAXX), a taxable money market mutual fund investing in U.S. Government Agency and Treasury debt, and related repurchase agreements. Intended for investors seeking as high a level of current income as is consistent with the preservation of capital and liquidity.1,2 Fidelity's FDIC Insured Deposit Sweep Program (the "Program") Through the Program, the uninvested cash balance in certain Fidelity accounts is swept into an FDIC-Insured interest-bearing account at one or more program banks and, under certain circumstances, a money market mutual fund (the "Money Market Overflow"). For more information, please refer to the FDIC-Insured Deposit Sweep Program Disclosures (PDF). See the current interest ratesOpens in a new window available through the FDIC-Insured Deposit Sweep Program. After your account has been established, you can change your core position to any other core position Fidelity might make available for this purpose.4 Although you can have only one core position, you can still invest in other money market funds. If you would like to change your core position after your account has been established, you can do so online or by calling a Fidelity representative at 800-544-6666.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Aug 2, 2022 11:00:59 GMT
|
|
|
Post by fishingrod on Aug 2, 2022 11:02:27 GMT
FZFXX seems to have the highest yld. as of today. 1.57% vs. 1.50% for SPAXX
Which is not worth changing for.
|
|
|
Post by ECE Prof on Aug 2, 2022 12:31:57 GMT
VMFXX pays 1.84%, as of this week. Ask FD. He has verified.
|
|
|
Post by Capital on Aug 2, 2022 12:44:25 GMT
I use FDRXX for my IRA Accounts and FZFXX for my Taxable Brokerage Account.
|
|
|
Post by fishingrod on Aug 2, 2022 13:13:51 GMT
VMFXX pays 1.84%, as of this week. Ask FD. He has verified.
It is 1.92% now. It should go quickly toward 2.15%
|
|
|
Post by ECE Prof on Aug 2, 2022 13:52:37 GMT
|
|
|
Post by marquay on Aug 2, 2022 14:19:02 GMT
Capital, How did you buy FXFXX at Fidelity for Taxable brokerage account? Thanks
|
|
|
Post by Capital on Aug 2, 2022 14:26:15 GMT
Capital , How did you buy FXFXX at Fidelity for Taxable brokerage account? Thanks Good catch and sorry FZFXX - I will fix the error in my post
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Aug 2, 2022 14:50:48 GMT
FZFXX seems to have the highest yld. as of today. 1.57% vs. 1.50% for SPAXX
Which is not worth changing for.
Doesn't it have a bit higher expense ratio as well?
|
|
|
Post by fishingrod on Aug 2, 2022 16:07:58 GMT
FZFXX seems to have the highest yld. as of today. 1.57% vs. 1.50% for SPAXX
Which is not worth changing for.
Doesn't it have a bit higher expense ratio as well?
FRFXX has net expense ratio of .15%
While SPAXX is .10%
Normally SPAXX would have a higher yield due to it being not quite as conservative as FRFXX. FRFXX holds exclusively US treasury securities and it's related repurchase agreements. SPAXX will hold agencies also. Both are very conservative and aim to hold it's NAV at $1.00, no guarantees but about as safe as you can get without FDIC/NCUA insurance.
|
|
|
Post by Capital on Sept 26, 2022 22:06:52 GMT
FYI the interest rate has been increased to 120pb. The rate has been increased from 120bp to 158pb
|
|
|
Post by ECE Prof on Oct 1, 2022 15:28:31 GMT
FYI the interest rate has been increased to 120pb. The rate has been increased from 120bp to 158pb $SPAXX pays 2.49% now. Fido lagged behind in the past, but It seems to match that of Vanguard now.
|
|
|
Post by fishingrod on Oct 1, 2022 16:14:57 GMT
Vanguards' VMFXX MM is at 2.77% now.
|
|
|
Post by ECE Prof on Oct 1, 2022 18:33:08 GMT
Vanguards' VMFXX MM is at 2.77% now. Good to know. That tells me that I should move my new cash to Vanguard, probably not now, since I will be moving to somewhere else.
|
|
|
Post by anitya on Oct 2, 2022 5:07:18 GMT
Vanguards' VMFXX MM is at 2.77% now. Good to know. That tells me that I should move my new cash to Vanguard, probably not now, since I will be moving to somewhere else. ECE Prof, There are Fidelity MM funds paying more than VMFXX. You can write a check on VMFXX and tell your Fidelity Rep to deposit the check in the specific Fidelity MM fund you want it to be deposited (does not have to be in SPAXX). You get the credit the day you give the check to Fidelity.
|
|
bruno
Lieutenant
Posts: 57
|
Post by bruno on Oct 3, 2022 1:05:15 GMT
The ER on MM at Fido are a lot more than MM at VG.
|
|
|
Post by Capital on Dec 6, 2022 23:31:44 GMT
FYI the interest rate has been increased to 120pb. The rate has been increased from 120bp to 158pb The rate has been increased from 158bp to 196pb
|
|