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Re: Interest on Checking Accounts?
Old 10-17-2006, 09:08 AM   #21
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Re: Interest on Checking Accounts?

Quote:
Originally Posted by youbet
That's strange they would tell you that Patrick. They have both sweep MM funds and traded MM funds. The traded funds pay a tad more but, as you said, must be bought and sold and have minimum amount qualifiers.

The Schwab web site is more difficult to strain information out of concerning their cash investment offerings than, for example, the Vanguard site. But go dig in, the info is there.
Youbet, I sent Schwab an email and got the following reply. Apparently I don't qualify for the sweep because I don't have $500K in the account.

"I can definitely understand your confusion. When Schwab opened Schwab
Bank this last year, a lot of accounts with money markets were
consolidated to the Schwab Bank Interest bearing account. This was due to the
higher cost of managing active money market funds. At this time,
accounts with a household balance over $500,000 qualify for the Schwab Money
Market Fund and other sweep money funds. Those under $500,000 will
have as their default money market the Schwab Bank Interest.

Please bear in mind that you have options for your uninvested cash in
your account. Schwab offers the non-sweep Schwab Investor Money Fund
(SW2XX) which you must actively buy and sell in your account. The
minimum investment is $2,500. This money fund is currently yielding 4.67%.
If the Schwab Investor Money Fund falls below $2,500, there is a $5 fee
per month. Another non-sweep money fund that you may consider is the
Schwab Value Advantage (SWVXX). This money fund requires a minimum
initial investment of $25,000 ($15,000 for retirement and custodial
accounts). This money fund is currently yielding 4.96%. If the Schwab Value
Advantage falls below $20,000 ($15,000 for retirement and custodial
accounts), there will be a $5.00 fee. To buy either of these money funds,
click on the "trade" Tab after you have logged into your account on the
Schwab Web site and then the "Mutual Funds" link just below."

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Re: Interest on Checking Accounts?
Old 10-17-2006, 09:35 AM   #22
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Re: Interest on Checking Accounts?

Thanks for all the help, folks. It looks like Presidential has the best rate (at least as far as I can tell) at 4.5% up to $25K and 2.75% above $25K. Anyone know why the rate goes down for the higher balances? Most banks seem to do this.

http://www.presidential.com/
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Re: Interest on Checking Accounts?
Old 10-17-2006, 12:09 PM   #23
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Re: Interest on Checking Accounts?

Quote:
Originally Posted by Patrick
Youbet, I sent Schwab an email and got the following reply. Apparently I don't qualify for the sweep because I don't have $500K in the account.
Thanks Patrick. Yeah, in aggregate we do meet the half mil requirement, so that explains it.

My satisfaction with Schwab has dropped to so-so the past couple of years. Their expenses are reasonably competitive, but not as low as Vanguard. But, for us, they offset that with excellent customer service. Whether we walk into the local office, use the internet or call, we usually get what we want with a minimum of hassle and that's important to us. They occasionally mention their money management services to me, but never a hard sell. When I call ahead before an office visit, they always have any forms I'll need to sign ready, subject matter experts at hand, etc. For example, I wanted to change some POA's and some option trading privileges on several accounts recently. I called the office down the street and made an appointment. When I arrived all the forms were filled out for my review, packets of info were pre-assembled, subject matter experts were on hand to answer questions and the coffee was excellent.

Because, in my absence, DW would struggle to handle everything through an internet-only brokerage, even if supplemented with telephone (just not her thing), I keep trying to justify that Schwab's higher fees are worth it.

It's a coin toss right nowl
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Re: Interest on Checking Accounts?
Old 10-17-2006, 12:27 PM   #24
 
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Re: Interest on Checking Accounts?

Quote:
Originally Posted by Patrick
Thanks for all the help, folks. It looks like Presidential has the best rate (at least as far as I can tell) at 4.5% up to $25K and 2.75% above $25K. Anyone know why the rate goes down for the higher balances? Most banks seem to do this.

http://www.presidential.com/
Why not just get an Account that pays around 5% - Like Vanguard MM that pays ~5% or Emigrant ~5% - use a Credit Card for all purchases and pay off the balance monthly. IOW - Elminiate most all checks - Write checks over $250 on the Vanguard Account (If you need to).
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Re: Interest on Checking Accounts?
Old 10-17-2006, 06:15 PM   #25
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Re: Interest on Checking Accounts?

it seems if you had cash reserves in a taxable account with fidelity you were allowed to keep it but now they use a lower paying core. cash reserves in a retirement account is still an option.
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Re: Interest on Checking Accounts?
Old 10-17-2006, 11:06 PM   #26
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Re: Interest on Checking Accounts?

Quote:
Originally Posted by mathjak107
it seems if you had cash reserves in a taxable account with fidelity you were allowed to keep it but now they use a lower paying core. cash reserves in a retirement account is still an option.
yes, that's the deal I was offerred. But it's still a great deal since there's no minimum on the core, and you get free electronic bill pay, Visa check card, and can keep 98% of your money in cash reserves at 5% interest. And there's no $250 minimum on checks. Still, it would be more convenient to just put it all in cash reserves.
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Re: Interest on Checking Accounts?
Old 10-18-2006, 03:16 AM   #27
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Re: Interest on Checking Accounts?

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Originally Posted by bosco
yes, that's the deal I was offerred. But it's still a great deal since there's no minimum on the core, and you get free electronic bill pay, Visa check card, and can keep 98% of your money in cash reserves at 5% interest. And there's no $250 minimum on checks. Still, it would be more convenient to just put it all in cash reserves.
fidelity even pays all my atm fee's...

i use them as my checking account and even have my pay check direct deposited. they reimburse me all atm fee's for taking money out.
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Re: Interest on Checking Accounts?
Old 10-18-2006, 05:22 AM   #28
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Re: Interest on Checking Accounts?

Quote:
Originally Posted by mathjak107
fidelity even pays all my atm fee's...

i use them as my checking account and even have my pay check direct deposited. they reimburse me all atm fee's for taking money out.
How timely, Driving around yesterday I see a (new) sign for a local bank
which says they now have a checking account which pays............
(forget exactly but over 5%) and totally free, no fees and no minimum
balances. Gonna check it out. Sounds too good to be true.

JG
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