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>e.g. sitting in cash I read somewhere (but didn't do my own research) Schwab's business model these days, maybe others, is making money off idle customer cash
by vba616 3y ago
>e.g. sitting in cash
I read somewhere (but didn't do my own research) Schwab's business model these days, maybe others, is making money off idle customer cash, now that they don't charge trading commissions. They may not want customers to buy anything.
With interest rates up so much, I would guess it is even more lucrative?
- upon_drumhead 3y agoWith VMRXX giving a YTD compound yield of 5.41% ( https://investor.vanguard.com/investment-products/mutual-funds/profile/vmrxx https://investor.vanguard.com/investment-products/mutual-fun... ), I've actually been happy to have parked a bunch of cash and not touched it.
- vba616 3y agoIt isn't going to compound though, at least that's what long term rates imply.