im just trying to set up a method for my in-laws to earn interest on their savings. So its either treasuries, CD’s or SPX boxes (since I understand those).
No. They are liquid. Just have them send out a request for bids. IB is at 4.58 on cash. 5/5/23 I-bonds are WAY too small. If you want to do 10K or less type stuff, I would look to teaser rate CDs. A lot of time they are fed rate plus a kicker, but they limit the amount to under 10-20K The no name banks are fine up to FDIC coverage. I had 3 go under when WA mu died. The FDIC was so prepared, the day after they went into receivership, I had the cash in my account plus the pending interest. Even trades can take longer to settle.
Why not just just buy some TBills from the Treasury. They are paying around 5 % or so right now I think (Haven't looked in a little while). It will keep you even with inflation (sort of), and 100% safe (unless Congress tells the Treasury not to pay on our debts.)
I don't think you understand sweep accounts and money market funds. It use to be a certain way for 30-40 years... Even different at Fidelity...
Well, you have to decide, if it is money you want t have ready to trade with or invest at a moments notice, leave it in a sweep account, and get nothing in the mean time. Otherwise if it is not money you want instantaneously available buy some T-Bills. They are very flexible in maturities of two weeks up to a year with virtually zero transaction cost. And they are marketable if you want to sell them before they mature, but then you'll have to go through a broker or bank and of course they'll take their cut.. Still better than a sweep account which guarantees you'll get swept.
Schwab sucks balls for fixed income. I dumped 'em for this reason. You have to switch brokers. Interactive Brokers is the best Retail broker I've found for bonds. They have a decent set of bond offerings for a retail broker, including Treasury, Corporate, Agency, Muni, and CDs. 0.005? Is it that high? XD Why are you trading bonds anyway? That's what the pros do... you're supposed to be a good citizen, keep your money in a savings account earning .00000001% interest while they leverage your cash up and ladder the risk-free bonds at 5% Sincerely, Keith Non-professional - not licensed - opinion only
Again, for 30-40 years brokers would toss the money (after the execution date...Float time) into a money market fund. I believe all brokers did this. Schwab changed this..."Our bank is so much safer". So, if you forget to trade or move (manually) to a fund, bond, or CD, Schwab Bank uses that money...Earning big time profits!! I like that they are making big time profits on the deals (since I own some Schwab stock)...Just don't make it on my back!!