Most people take a simple view of cash: they have a checking account for spending and a savings account for savings, and if they get fancy, they’ll have a CD for longer term savings goals. Power users will change to an online bank with better returns, and that’s about as far as it goes. That certainly works, but we can do a...
I’ve heard a lot of positive things about the Fidelity Cash Management Account and I’ve been seriously researching and considering opening one. Am I correct in understanding that I could have it set up so that my direct deposit goes into the CMA and is automatically used to buy into the money market fund, then have it automatically liquidate the money market fund to cover expenses and withdrawals from the account?
Oh, that makes sense. Thanks for the very thorough and helpful response.
After reading this and some other posts, it looks like what I actually want is the standard brokerage account, so I can have SPAXX as my core position and make other investments in the same account. It looks like the brokerage account has all the same features as the CMA except for the debit card perks, but I almost never use debit cards.
I did not know about the yearly “Savings Match” on Bloom until you mentioned it here. Maybe I’ll also open that account and throw $300 in for the cash bonus.
Money market is the way to go. You are exposed directly to the federal bonds, which are basically what most banks use to back their high interest accounts, so you will get the the highest rate possible with no middle man. Money market funds are not FDIC insured, but the Vanguard fund (VMFXX) has never “broken the buck” or lost value since its inception in 1981.
[US] Consider a brokerage account for your main bank
Most people take a simple view of cash: they have a checking account for spending and a savings account for savings, and if they get fancy, they’ll have a CD for longer term savings goals. Power users will change to an online bank with better returns, and that’s about as far as it goes. That certainly works, but we can do a...
Anyone think that a site like Wealthftont is a good place to stick an emergency fund? ( www.wealthfront.com )
A buddy of mine told me about Wealthfront recently and they’re 5% money market account rates....