The rates are locked is the only advantage. I always use my money market fund over CDs. Rates are the same or slightly higher and it's fully liquid. They are subject to rate changes too but if you're looking at a 3 or 6 month CD the rate's not going to change much. Right now it might work in your favor too since I get the feeling that the Fed might raise a quarter point.
Sounds like some of the rule stacking that I was fighting over with Chase. I ended up closing all of my accounts with them over it. Still trying to figure out what I want to do long term for a bank.
I opened a brokerage account with Fidelity based on a lot of videos I watched on Youtube. It's easy to have all the financial abilities in one place. Not sure Fidelity is the best. Lots of people like Schwab. At least on Youtube.
Did you get one of the Fidelity Cash Management accounts (CMA)? I was looking at them and AmEx's checking accounts. If so, any issues with ATM use with it? Having ATM access and being able to pay bills from it are my main concern. I also have an account at Wells so I'm not concerned with not having branches.
That's the account I got from watching Youtube channels. They have a bill pay application even. I have not used it because I have been paying everything from the credit card, which pays cash to your cash account or brokerage account, whichever you pick. So you get cash rewards. They have ATMs here in Phoenix, but they also reimburse your ATM fees use if you use other ATMs. I have used other ATMs and had them reimburse the fees almost immediately.
Yeah, when I say "pay bills" I mainly mean pay my credit card. I have everything that I can autopay to it and then pay it off each month. I think my APS bill is the only thing that doesn't hit it. It's great for only having to worry about making a couple payments and credit score. I'm over 850 now with it.
I am in the 800s, and I get enough in cash back to make it worthwhile. The videos are mostly how you can use the credit cards returns to boost your investments. One caveat, if you are trading a lot of stocks their platform is pretty basic. I get the feeling the Schwab Think or Swim platform is better.
Good to know! Thanks.
Do you use the free checking?
Most of my brokerage and retirement accounts are with Fidelity - I have been pretty happy overall, including with the amounts I earn on cash. I like that Fidelity automatically sweeps uninvested cash into a higher-yield money market fund, while Schwab sweeps idle cash into its affiliated bank at a rate pretty close to zero. To get a competitive market rate in my two Schwab accounts, I need to manually buy and sell the money market fund when I execute trades in other investments, like an equity security. I deal with this (I like having at least some institutional diversification) but Schwab's sweep practices are annoying and a little time consuming at times for me.
Oof on Schwab. Vanguard is like Fidelity in that they use a money market fund as the sweep account. Its rates are usually similar to the one Fidelity uses for sweep. I thought that was fairly standard these days.
I happen to have my retirement account in Vanguard. I like their trading setup better than Fidelity, FWIW.
www.betterment.com
Info on E*trade account you’re referring to?
us.etrade.com
Thanks… I’m actually getting 3.5 right now through Marcus but might be worth a switch for six months of a half percent boost plus the 250I think I linked it earlier but just in case
Premium Savings Account: 4.00% APY For 6 Months | E*TRADE
Open a high-yield Premium Savings Account from Morgan Stanley Private Bank & earn 4.00% APY—10X the national average. No monthly fees, no minimum deposit.
I don't personally use it but I have a couple buddies that are using their high yield savings account and like them for that. I don't know anyone that used them for investments though.I was surfing the internet and came up with an investment site named "Betterment."
It is reportedly an automation type investment business. I was wondering if anyone uses it or has thoughts about it.
Betterment | Automated investing & Financial planning
Betterment can help grow your money by making saving and investing easy. Invest in a tailored portfolio, set buckets for your goals, and earn rewards.
That's sort of what I do with my Vanguard account for the most part. I have my direct deposit go to it with part of it staying in my money market fund and part going into VOO, their S&P ETF. Mostly set and forget. I haven't found a good reason to not stick with a low overhead S&P option. The managed fund really haven't been outperforming it on a consistent basis. They might for one quarter and then the next quarter be down. Most of the market action has centered around the mag 7 and they're all in it.
