Cash flow management - sweeping accounts, etc.

[audreyh1]

What are you using for high yield savings? Ally yields 1.95% now.

I have Amex Bank at 2.1% and Synchrony Bank at 2.15%. I also have an Ally Bank account but my funds there are invested in short-term CDs including no-penalty CDs yielding 2.3%.

 

[Gotadimple]

I have Amex Bank at 2.1% and Synchrony Bank at 2.15%. I also have an Ally Bank account but my funds there are invested in short-term CDs including no-penalty CDs yielding 2.3%.

Amex will be lowering it's rate to 1.90% effective tomorrow. Just got the email.


-Rita

 

[audreyh1]

Amex will be lowering it's rate to 1.90% effective tomorrow. Just got the email.


-Rita

Yep, just got that now.

 

[Gotadimple]

I've had more cash than $2K in my Schwab accounts and it's never been moved to a MM fund. I need to ask them about automated transfers, I looked last night and while they do have them, they seem to require a fixed amount. I couldn't find the "transfer all available cash" which is what I need.

Sorry, Larry! I should have been more clear.

I have to move money (buy shares in) a Money Market Fund - there is no automatic sweep. They did have that at one time, available to all clients. But since then changed all their sweep accounts over to a bank instead of their low-paying in-house Money Funds - unless you have managed accounts or charitable accounts with them.

So, I used to just accumulate cash throughout the year to use to re-balance and withdraw annually. But, with the abysmal standard interest rates offered by their bank, you are better off periodically moving $$ from your bank account in Schwab to a Money Market fund. You have to buy shares in a fund. Then sell shares when you want to invest.

Current sweep rates at Schwab are .18% APY for amounts under $25k vs. Schwab Value Advantage Money Fund (SWVXX) at 1.99% with no minimum investment.

- Rita

 

[LarryMelman]

I just spent an incredibly frustrating half-hour in e-chat with Schwab. I told them I already set up my Ally bank account for EFT, but although an online transfer could be set up as recurring, an exact amount had to be specified. The agent eventually got me to a paper form to set up something called MoneyLink, for which I needed to give my bank account numbers (they already have them), a voided check or deposit slip (Ally is an online bank, I don't have any), and then I can do automatic sweep-out of all new income, or certain kinds of new income (leaving any actual deposits untouched, which is a nice feature). When I said I didn't have checks or deposit slips, she offered to set it up on the spot... which I wasn't ready to do. So I guess when the time comes, I'll print the form and take it to the local Schwab office and have them help me.

Grrrr.

 

[LOL!]

I just spent an incredibly frustrating half-hour in e-chat with Schwab.
[...]
Grrrr.

I suspect the person you did the e-chat with is now posting on another internet forum the exact same thing about their day at work.