What is the use for Fidelity Cash Management Account when I already have the brokerage account?

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muffins14
Posts: 5529
Joined: Wed Oct 26, 2016 4:14 am
Location: New York

Re: What is the use for Fidelity Cash Management Account when I already have the brokerage account?

Post by muffins14 »

student wrote: Sat Aug 13, 2022 9:52 pm
Perhaps you are at some even higher level.
Perhaps I’m not. I might just not make that many ATM withdraws. I can imagine maybe one per month most months so maybe $40-$60 max. Then maybe a couple more with international travel?

I’ll update here if I see some that are not reimbursed and actually experience this
Crom laughs at your Four Winds
Golf maniac
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Joined: Wed Dec 27, 2017 1:02 pm
Location: Florida

Re: What is the use for Fidelity Cash Management Account when I already have the brokerage account?

Post by Golf maniac »

frugalor wrote: Mon Nov 22, 2021 6:45 pm
fuseboy wrote: Mon Nov 22, 2021 5:55 pm
frugalor wrote: Mon Nov 22, 2021 1:48 pm Nowadays, neither the CMA nor the brokerage account pay any interest for cash balance. I am moving my cash somewhere else. I thought about separation of accounts like what you are doing, but decided to just consolidate to optimize for interest.
Huh? Sure they do. You'll see it on your statement under "Dividends, Interest and Other Income" and it will either be a "Interest Earned" or "Dividend Received" if you parked your cash in a money market fund like SPRXX. It doesn't pay out a whole LOT, like everywhere else nowadays, but it does pay.
I used SPAXX as my core fund. When I signed up last year, I saw 0.6% 1yr and YTD. I just checked and it says 0.01%. I think it said 0.00% last month.

https://fundresearch.fidelity.com/mutua ... /31617H102
I use Sterling Bank as my FDIC insured sweep for my CMA and it is paying 1.19% Right now, not bad for a checking account.
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