High Interest Cash plus Good Broker

Discussion in 'Retail Brokers' started by igum, Aug 22, 2007.

  1. igum

    igum

    Which retail broker makes it easy and quick for someone to juggle money between a high interest cash account (5%) and a trading account.

    Etrade is one. I think Fidelity has some kind of cash management account but thats only 3.87% or so. Any others that make it quick/easy to transfer between a 5% cash account and the main trading account?
     
  2. Ameritrade if you request the money market sweep gives you a trading account that keeps money in a money market account which I think gets around 4.3-4.4%. That seems to be about the standard for money market funds these days.
     
  3. Div_Arb

    Div_Arb

    Schwab ain't bad for these types of things. I have my long-term money there. I think their money market pays around 5%.
     
  4. Catoosa

    Catoosa

    IB is paying close to 5% on free cash balances depending on the balance; However, IB pays no interest on the first $10,000 of free cash. You do not have to transfer or move the money to get this rate. The rate is paid on the trading account cash balance.
     
  5. IB will let you earn the equivalent of even greater interest, on your entire cash balance, including the first $10K, if you sell EFPs in your IB account.
     
  6. New accounts only 1%.

    1/2 million dollars required to get into schwab money market sweep funds now.

    1/2 million dollars also required if you're not in the treasury money market fund & you want to switch to it.

    If you don't have a 1/2 million dollar account, tough.

    Isn't Chuck nice?

    Don't believe me?

    Call them & report back.
     
  7. WinSum

    WinSum

    What does EFP stand for ?
     
  8. nkhoi

    nkhoi Moderator

    a) Exchange of Futures for Physical (EFP)
    b) Exempted Fishing Permits
    c) explosively formed projectile
     
  9. Fidelity designates a money market of your choosing as your sweep "core" account for your free cash. Their rates were about 5%. You may be better off with a tax-free municipal account yielding less than 5% though.

    They also allow you to use any bank's ATM (they refund ATM fees), unlimited checking, etc.