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Where to park money at Charles Schwab?
04-21-2017, 09:56 AM
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#1
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Full time employment: Posting here.
Join Date: Sep 2008
Posts: 998
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Where to park money at Charles Schwab?
Am new to CS, and wanted to move some money from the default cash account into a money market account with some type of return.
Ended up selecting SWVXX "Schwab Value Advantage Money Fund Investor Shares."
Just new to CS and was curious what others are doing. Am not used to having so many options...... LOL LOL
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"I couldn't wait for success, so I went ahead without it." Ret. 2013 @ 51.
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04-21-2017, 10:02 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
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+1 on SWVXX although also use Schwab US Short Term Treasury etf.
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FIRE'D in July 2009 at 51...Never look back!
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04-21-2017, 10:07 AM
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#3
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Dryer sheet wannabe
Join Date: Jan 2015
Posts: 14
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expense ratio .03% - SWTSX - Schwab Total Stock Market Index
expense ratio .03% - SWPPX - Schwab® S&P 500 Index Fund
expense ratio .03% - SCHB - Schwab U S Broad Market ETF
expense ratio .03% - SCHX - Schwab U S Large Cap ETF
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04-21-2017, 10:31 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 2,599
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Quote:
Originally Posted by RockyMtn
+1 on SWVXX although also use Schwab US Short Term Treasury etf.
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+1 on SCHO (US Short Term Treasury ETF)
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Only got A dimple, would have preferred 2!
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04-21-2017, 11:41 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,308
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Depending on how much money and when you need it, you might consider buying a short bond directly. Govvies and agencies are marginally safer than MMFs and might get you a few more basis points of net yield. Brokered CDs are another option, FDIC insured up to $250K.
If you have an account with Schwab you probably have an assigned rep; he/she would be a good one to ask, too. If you're interested in bonds, they will flip you to a bond specialist. I do not do a lot of fixed income stuff, but the bond specialists are not commissioned and at least the one I talked to was very helpful and generous with his time.
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04-21-2017, 12:02 PM
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#6
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,140
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For cash I need liquid I just use the cash sweep. I have bond funds for my fixed income portion of my AA. The schwab investor checking also pays interest.
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Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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04-21-2017, 12:35 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,405
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Schwab investor checking for me. I sweep everything over there from the brokerage account. It's a fairly modest taxable account with low cost, tax efficient Schwab index funds and ETF's, so not a huge amount of money.
If you want to deposit money into the checking account, it's faster to transfer it to the brokerage account and then sweep it over. Different transfer process.
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04-21-2017, 12:52 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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Quote:
Originally Posted by almost there
Am new to CS, and wanted to move some money from the default cash account into a money market account with some type of return.
Ended up selecting SWVXX "Schwab Value Advantage Money Fund Investor Shares."
Just new to CS and was curious what others are doing. Am not used to having so many options...... LOL LOL
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I have an Amex money market account that pays 0.90% linked to my Schwab, Ameritrade, and Fidelity accounts. I sweep up my excess cash into that account. You are limited to 5 withdrawals per month from the Amex account and unlimited deposits.
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04-21-2017, 01:01 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 37,931
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Quote:
Originally Posted by Freedom56
I have an Amex money market account that pays 0.90% linked to my Schwab, Ameritrade, and Fidelity accounts. I sweep up my excess cash into that account. You are limited to 5 withdrawals per month from the Amex account and unlimited deposits.
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I think it's 6 withdrawals per month.
That's a standard schedule D rule for FDIC insured high yield savings accounts.
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Retired since summer 1999.
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04-21-2017, 01:34 PM
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#10
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Recycles dryer sheets
Join Date: Feb 2015
Posts: 212
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Quote:
Originally Posted by Freedom56
I have an Amex money market account that pays 0.90% linked to my Schwab, Ameritrade, and Fidelity accounts. I sweep up my excess cash into that account. You are limited to 5 withdrawals per month from the Amex account and unlimited deposits.
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Same setup for me. Schwab and AMEX HYS. Yes, it's 6 withdrawals per month allowed in the AMEX account.
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04-21-2017, 02:36 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: The Beautiful Blue Ridge Mountains
Posts: 2,778
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Been with Schwab for over 25 years and love the account. However, the "high yield" checking ain't. I park my cash at Ally, and have it electronically linked to the Schwab account. Works for me.
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04-21-2017, 02:45 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 2,487
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There are no high yield options for a cash acct, that I'm aware of. We use a cash sweep acct that is based on CA bonds, because we are in CA. You should have the good folks at Schwab give you some advice based on your location. We've been with Schwab for over a decade and it has been very good for us.
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Find Joy in the Journey...
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04-22-2017, 02:17 PM
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#13
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Recycles dryer sheets
Join Date: Oct 2009
Posts: 246
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Quote:
Originally Posted by GalaxyBoy
Been with Schwab for over 25 years and love the account. However, the "high yield" checking ain't. I park my cash at Ally, and have it electronically linked to the Schwab account. Works for me.
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Same here link to Ally and GS Bank at 1% and 1.05%
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04-22-2017, 02:28 PM
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#14
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Full time employment: Posting here.
Join Date: Sep 2008
Posts: 998
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Yep, keep non IRA cash at Ally @ 1%.
But in the IRA's, when there isn't anything I want to invest in.
Its got to go somewhere...........Other than cash earning .05% or what ever it is......
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"I couldn't wait for success, so I went ahead without it." Ret. 2013 @ 51.
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04-22-2017, 05:32 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,304
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Quote:
Originally Posted by almost there
Yep, keep non IRA cash at Ally @ 1%.
But in the IRA's, when there isn't anything I want to invest in.
Its got to go somewhere...........Other than cash earning .05% or what ever it is......
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Opening an IRA savings account at Ally now. I see they have some 9-15 month CDs that might work for me too. I'm moving from GS Bank since they don't offer IRAs.
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...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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04-23-2017, 10:16 AM
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#16
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 2,599
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Quote:
Originally Posted by almost there
Yep, keep non IRA cash at Ally @ 1%.
But in the IRA's, when there isn't anything I want to invest in.
Its got to go somewhere...........Other than cash earning .05% or what ever it is......
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Short-term bond fund/etf, like SCHO etf. Low expense ratio, no commission, pays a monthly dividend. Take all dividends in cash for later use.
Can you use it like a sweep fund? I think so, but check the prospectus for any restrictions on withdrawals.
- Rita
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Only got A dimple, would have preferred 2!
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04-23-2017, 12:26 PM
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#17
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Full time employment: Posting here.
Join Date: Sep 2008
Posts: 998
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At 55 it gets re-invested....... Also have 5 yr IRA CD's at Ally.
They used to be competitive interest rate wise, but have dropped the ball over the past year.............
__________________
"I couldn't wait for success, so I went ahead without it." Ret. 2013 @ 51.
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04-24-2017, 07:45 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 37,931
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Ally bank just raised their high yield rate to 1.05%. Now it matches Synchrony bank.
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Retired since summer 1999.
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04-24-2017, 09:02 PM
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#19
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Full time employment: Posting here.
Join Date: Sep 2008
Posts: 998
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I see that. Have 50k in that one. Up .05%.
And the 5yr went up .25% Its about time. LOL LOL
__________________
"I couldn't wait for success, so I went ahead without it." Ret. 2013 @ 51.
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