Consolidating Cash Assets to a Single Brokerage - Fidelity or Schwab?

[pb4uski]

I think I will have to deviate from my intended single basket objective. Schwab simply does not have access to any 5% CDs over 1 year. At least not that I can see. I am not really interested or comfortable messing with uninsured investments AKA bonds.

We will be taking $0.5 out and investing $0.25 each in Navy Federal's 5% 15 Month CD. Sorry Schwab.

I used to do the ol game chasing yield by moving money in an out for credit union specials. In my case it was IRA money so a bit more hassle than taxable account money.

You might want to check out some of the agency issues at Schwab. Most are rated AA+ by S&P and Aaa rated by Moody's, the same a UST. 3130AUSZ8 is a new issue with a 5.3% coupon. Matures Feb 2028 and call protected to May 2023. Another issue that I have my eye on is 3134GYFN7. 5% coupon and has traded at 100 recently that matures Jan 2028 and call protected to Jan 2024.

IMO the credit risk of a Aaa agency bond vs NCUA is negligible and not worth fretting about at all.