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Schwab got rid of sweeps. Really makes Fidelity a lot more appealing if you keep a lot of cash in there.
by trimbo 7y ago
Schwab got rid of sweeps. Really makes Fidelity a lot more appealing if you keep a lot of cash in there.
- StevePerkins 7y agoI feel like I'm discussing climate change, where there are multiple perceptions of reality competing for attention. Other people in this thread report that Schwab pays interest on checking account balances. Schwab's website clearly states that their checking account accrues interest. There's a footnote link there, but the fine print simply says that the rate can change over time. https://www.schwab.com/public/schwab/banking_lending/checking_account https://www.schwab.com/public/schwab/banking_lending/checkin... Of course, just as I don't understand people using a traditional bank these days, I likewise don't understand letting a large cash balance sit in checking account. The best interest rate you're going to see these day is probably sub-1%. So why leave excess money sitting around in a checking account, when sweeping it into even a short-term U.S. bond fund would provide 2x-10x the return with no additional risk? (i.e. if U.S. Treasuries default, then money market accounts are probably screwed too anyway)