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Interest paid in sweep accounts
Old 09-19-2006, 05:07 PM   #1
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Interest paid in sweep accounts

I have an account with Ameritrade.* Their sweep account pays a paultry .1%. (that's 1/10/th of 1%.*

In the Discount Broker areana, who has more generous interest rates for their sweep accounts.* I don't want to be restricted to buying only one fund type like Vanguard for example.* I am interested in dividend stocks, raits and some bonds, so I'd like something that makes more sence until I can get to reinvesting it.
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Re: Interest paid in sweep accounts
Old 09-19-2006, 07:52 PM   #2
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Re: Interest paid in sweep accounts

That's insane

My Schwab account is paying 4.82% as of today on the sweep MMF

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Re: Interest paid in sweep accounts
Old 09-19-2006, 08:26 PM   #3
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Re: Interest paid in sweep accounts

Quote:
Originally Posted by saluki9
That's insane

My Schwab account is paying 4.82% as of today on the sweep MMF

Yes. The schwab sweep use to be weekly, but now its done daily. Its even better.
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Re: Interest paid in sweep accounts
Old 09-19-2006, 09:09 PM   #4
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Re: Interest paid in sweep accounts

WellsFargo pays 4.62% this week. I also have an account at TDAmeritrade, but will do no new buys in it and the major reason is the sweep account interest rate.

WF trades are $2.95 for me and soon to be $0. Even transaction fee mutual fund trades are $2.95.
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Re: Interest paid in sweep accounts
Old 09-20-2006, 08:31 AM   #5
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Re: Interest paid in sweep accounts

My fidelity account pays something like 3.7% for balances less than $1000 cash, and 4.9% for cash bal over $1000. I think I'm at the "silver" trading commission level which means I have $50000+ in assets (mostly mutual funds) and I get $8 trades. Plus you get access to no fee fidelity mutual funds (they have a number of supercheap index funds). Great customer service so far.

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Re: Interest paid in sweep accounts
Old 09-20-2006, 08:41 AM   #6
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Re: Interest paid in sweep accounts

Quote:
Originally Posted by modhatter
I don't want to be restricted to buying only one fund type like Vanguard for example. I am interested in dividend stocks, raits and some bonds, so I'd like something that makes more sence until I can get to reinvesting it.
Not sure what you mean by this, but you can open an account with Vanguard Brokerage Services and have the money swept into any of Vanguard's money market funds. Also, if you have enough assets to qualify for their Flagship service, you get all kinds of other benefits.
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Re: Interest paid in sweep accounts
Old 09-20-2006, 10:29 AM   #7
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Re: Interest paid in sweep accounts

This may be a dumb question when you are with either Vanguard or Fidelity, aren't you restricted to only their funds, as opposed to other Discount Brokers?
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Re: Interest paid in sweep accounts
Old 09-20-2006, 10:35 AM   #8
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Re: Interest paid in sweep accounts

Quote:
Originally Posted by modhatter
This may be a dumb question when you are with either Vanguard or Fidelity, aren't you restricted to only their funds, as opposed to other Discount Brokers?
No, you can invest with anyone who's funds fidelity or VG sells. They both have a huge selection of funds to pick from.

For some reason I think Vanguard has a more limited selection of funds than Fidelity, since I think there was a schwab fund I was looking at that Vg doesn't sell, but Fidelity does (SWPNX).

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Re: Interest paid in sweep accounts
Old 09-20-2006, 10:36 AM   #9
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Re: Interest paid in sweep accounts

Quote:
Originally Posted by modhatter
This may be a dumb question when you are with either Vanguard or Fidelity, aren't you restricted to only their funds, as opposed to other Discount Brokers?
Both Fidelity and Vanguard have brokerage services that are apart (but integrated with) their mutual fund offerings. *So you are not restricted to only their funds...

... as long as you open a brokerage account with them.
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Re: Interest paid in sweep accounts
Old 09-20-2006, 01:55 PM   #10
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Re: Interest paid in sweep accounts

With the broker you mentioned, Ameritrade, check their MMF (WTOXX), I believe it pays around 4.4%. You may call and find out the latest yield.

Al
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Re: Interest paid in sweep accounts
Old 09-20-2006, 08:51 PM   #11
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Re: Interest paid in sweep accounts

"That's insane

My Schwab account is paying 4.82% as of today on the sweep MMF"

This feature is only available to Schwab customers with household balances over $500,000.

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