Fidelity offers >5% interest compounded daily for idle cash in a brokerage account. Dollars are exchanged 1:1 for SPAXX, the Fidelity money market fund. SPAXX seems to be fully fungible - I can transfer, withdraw, etc easily. Question for financially savvy Blinders: Why shouldn't I just ditch my bank and use Fidelity brokerage w/SPAXX for everything, including savings?
FDIC limits? Though that's not really a big risk because if Fidelity goes bust...well, let's just say toobigtofail. I keep mine there too
lol no. Look at cost.
Already ditched my savings at a bank for fidelity. The cash account is great and you get a debit card. This is strictly savings so I don't actually use that debit card, but it's nice just in case. The only reason I use checking at a different bank is because it's easier to navigate for spending trends, direct deposit set ups, venmo, and other app integrations. It also just didn't make sense to have my spending account in a money market.
Buy 6 months treasury directly from treasury direct. Itâs easy and saves money if you are investing beyond 10k. Most of money market companies mint money because of spread between treasury and what they offer.
I use Spaxx for all my savings
FZDXX. Look into that. It's premium money market. I had SPAXX then an advisor told me about it. Minimum to open is 100k but you can keep it of you fall below. The interest is higher than SPAXX.
meh thats only 5.19% robinhood offers 5.25% with same protections
Yes