Brokerage firms have been earning nice profits on clients' uninvested cash. Now investors are demanding better treatment and regulators are taking notice. With interest rates on the rise, consumers are looking for ways to maximize the returns on their idle cash.
You can still earn over 4% on uninvested cash in your brokerage account. But to do so, you have to choose a broker with a high cash sweep rate. This is where options like SPAXX and FCASH come into play, offering competitive interest rates on idle funds.
Consumers looking to earn high interest on savings while having easy access to the cash can be torn between high-yield savings accounts and money market funds like SPAXX and FCASH. Understanding the differences between these options is crucial for making informed decisions about where to park your cash.
Low inflation once meant investors could just park cash in money markets, but no more. Here's a look at high-interest CDs, sweep accounts, and other options for maximizing returns on uninvested cash in brokerage accounts. SPAXX and FCASH are two popular choices for investors seeking competitive yields.
If you're looking to earn a competitive interest rate on your cash in a relatively low-risk investment, you might want to consider money market mutual funds like SPAXX and FCASH. These funds offer a convenient way to access high yields on uninvested cash.
Money market funds are now paying above 5%. Here's what to know before transferring cash from a savings account to funds like SPAXX and FCASH. Understanding the risk and rewards of these investments is essential for maximizing returns on idle cash.
Fidelity plans to end the ability of independent financial advisors to use high-yielding Fidelity money-market funds as the core sweep account for new clients. This move may impact investors' options for maximizing returns on uninvested cash in brokerage accounts.
If you funneled cash into money market mutual funds in 2023 amid rising interest rates, you may have a surprise tax bill in April. Understanding the tax implications of investing in funds like SPAXX and FCASH is essential for managing your finances effectively.
On or around June 15, 2024, you'll have the option to elect Fidelity(R) Government Money Market Fund (SPAXX) as your core sweep investment vehicle. This option could provide a competitive yield on uninvested cash in your brokerage account.
