At a Schwab brokerage account, your settlement account earns just 0.4% interest, compared to over 5% at Fidelity and Vanguard. To earn more at Schwab, your have to move funds to a money market mutual fund. the rate there is better but if you want to make a trade, you have to wait overnight to get your funds. Does Schwab really deserve to be mentioned as a go-to brokerage for those seeking a decent rate on their cash?
Earlier this year, I moved all my bank cash to a high-yield savings (4.5% APY - FDIC insured). I've considered moving it to other accounts, but don't want to deal with the setup and credit hit. Moving to treasury direct is tempting to get that extra 120bp...especially for a 4-6 month bill.
At a Schwab brokerage account, your settlement account earns just 0.4% interest, compared to over 5% at Fidelity and Vanguard. To earn more at Schwab, your have to move funds to a money market mutual fund. the rate there is better but if you want to make a trade, you have to wait overnight to get your funds. Does Schwab really deserve to be mentioned as a go-to brokerage for those seeking a decent rate on their cash?
Earlier this year, I moved all my bank cash to a high-yield savings (4.5% APY - FDIC insured). I've considered moving it to other accounts, but don't want to deal with the setup and credit hit. Moving to treasury direct is tempting to get that extra 120bp...especially for a 4-6 month bill.