SPRXX has a 2.03% 7 day SEC yield as of 8/8/2022.nalor511 wrote: ↑Tue Aug 09, 2022 2:19 pmYes. And Fidelity CMA (or brokerage) pays almost 2% if you buy sprxxneed403bhelp wrote: ↑Tue Aug 09, 2022 2:18 pmFair enough. Can you do direct deposit into the brokerage account (I assume yes as even Vanguard lets you do that, or at least used to let you)? What about trial deposits?nalor511 wrote: ↑Tue Aug 09, 2022 12:38 pmIf you want to automate that part, just do what was suggested many times already, keep all the $ and deposits into the brokerage, and keep $0 in the CMA with overdraft turned on to use the brokerage for the overdraft, and have withdrawals only on the CMA so you get ATM reimbursement, and if you ever have a fraud issue you can just flip the overdraft off and your brokerage is insulated.need403bhelp wrote: ↑Tue Aug 09, 2022 12:35 pmOk, thanks. Re "This is different than the brokerage account where the money market fund selection can be core," someone had mentioned that it is possible to get check writing ability, debit cards, ATM card, etc. for brokerage account and that only difference between CMA and brokerage in this case is reimbursement of ATM fees. Is this correct? If so, would one be able to do the brokerage account with all of these features and use FZFXX as core position, then ACH push directly into that and have money go into FZFXX automatically?sobogled wrote: ↑Tue Aug 09, 2022 11:08 am
For the cash management account, the FDIC sweep is the core position, so yes funds will go there. This is different than the brokerage account where the money market fund selection can be core.
SPAXX is a good option that cannot be suspended although still has a theoretical break the buck risk from the small position in agency notes. FDLXX is a treasury only option.
IMHO the Fidelity route provides a great flexibility (different funds, brokered CDs, etc) and a stability (relatively unchanged offering, unlike SoFi which has been more fickle). The downside is that generally, there's a FDIC insured savings out there somewhere that pays nearly what Fidelity Money Market funds return, so it can feel like a strange risk-reward tradeoff.
Also, to be thorough, I tried to look at other brokerages but looks like Schwab only pays 0.25% APY for their checking account sweep (https://www.schwab.com/checking) whereas Fidelity CMA has 1.2%. I wonder if there's a place to compare brokerage yields? Obviously, Vanguard doesn't have one, but I wonder if TD Ameritrade or E-Trade or some other brokerages might have competitive yields on pseudo-checking accounts?
I just setup a Fidelity CMA to take advantage of this yield to pay mortgage and CC bills.