News | 08.09.19
Brokers Bank on Your Cash, but Some Are Breaking From the Pack
Fidelity Investments said that it is automatically sweeping cash in new brokerage and retirement accounts into a money market fund yielding 1.91 percent annually. That compares to the 0.2 percent national average yield on money funds and 0.09 percent on savings account balances. Offering higher yields on cash has become a popular tactic to attract customers. Automated advisors Betterment and Wealthfront, for example, are offering more on cash by sweeping it to partner banks, and some banks have been paying relatively high interest on savings. But Fidelity’s move is notable given how the biggest brokerage firms have been treating customers’ cash.
Read the full article on Wall Street Journal