Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • Debbie Young
  • Jimmy Buffett
  • Key West
  • Your Survival Guy
  • How We Are Different
  • Paris
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • The Great Reset
  • The Swiss Way
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • Dick Young
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Bank Credit & Money
  • Your Survival Guy’s Super States
  • NNT & Cholesterol
  • Your Health
  • Ron Paul
  • US Treasury Yield Curve: My Favorite Investor Tool
  • Anti-Gun Control
  • Anti-Digital Currency
  • Joel Salatin and Alfie Oakes
  • World Gold Mine Production
  • Fidelity and Vanguard Since 1971

Your Cash Swept into Your Broker’s Bank Account!

April 4, 2023 By Richard C. Young

By pathdoc @ Shutterstock.com

UPDATE 4.4.23: Don’t allow your savings to be swept into an account paying almost nothing in interest. Your Survival Guy writes this morning:

Is your lazy cash sitting around eating all your Easter candy? Murdering Peeps and defenseless chocolate bunnies? Well, after this weekend, that needs to stop. No más. With Fidelity’s Treasury Money Market (FZFXX) yielding close to 4.5%, it’s time to get your lazy cash off the couch. A little spring cleaning, if you will.

If you’ve been living in a cave, and I don’t fault you for that, then you know the village is in an uproar over the banks. This is nothing new to Your Survival Guy, and I hope to you. Since the beginning of time, the “smartest guys” in the kingdom have been reckless with other people’s money. And when the money’s gone, it’s gone.

Read more from YSG here.

Originally posted October 7, 2019.

At The Wall Street Journal, Jason Zweig explains the treatment customers are receiving at Schwab. He writes (abridged):

The term “brokerage” is becoming a misnomer. Firms like Schwab are more like banks than brokers.

In the first half of 2019, Schwab clients moved $58 billion into money-market funds and other higher-yielding choices. But most don’t bother. Even worse, many don’t have a choice because they hold accounts that are required to keep cash at low yields in Schwab’s own bank.

That has been a bonanza for the firm.

Schwab pushed $11.8 billion out of higher-yielding money-market funds into deposits at its own bank in the first half of 2019, according to the company.

As of June 30, deposits at Schwab’s bank totaled $208 billion.

This week, clients were earning between 0.12% and 0.55% on those balances.

When clients invest in Schwab Intelligent Portfolios, its roboadvisory service that offers preselected baskets of ETFs, between 6% and 30% of the money goes into cash.

Schwab doesn’t use money-market funds or short-term Treasury debt, which could earn nearly 2% at recent rates. Instead, it shunts the cash into Charles Schwab Bank, which currently pays 0.55% on the money—and then turns around and lends it out at roughly 2%.

Read more here.

 

If you’re willing to fight for Main Street America, click here to sign up for my free weekly email.

Related Posts

  • Survival Cash
  • In 2019, Give Me Cash
  • China’s Cash Crunch
  • Author
  • Recent Posts
Richard C. Young
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Richard C. Young
Latest posts by Richard C. Young (see all)
  • The Single Worst Market Timing Event in History - September 25, 2023
  • “But What Happened to Eggs?” - September 25, 2023
  • The Breakfast of Champions - September 25, 2023

Dick Young’s Must Reads

  • The Simple, Elegant Power of the Retirement Compounders
  • How Will YOU Feel in Retirement? Let Me Explain
  • What’s the Best Survival Currency?
  • “The Losses are Taking a Toll on Their Health”
  • Hey, Where’s Everyone Going? Follow the Money Kid
  • Joel Salatin Can Help Americans Beat Food Inflation
  • The Armed American Family: Part I
  • “I’ve Got Guys Buying Guns/Ammo for Me All Through the Night.”
  • When Is the Best Time for You to Do This?
  • The Worst President in American History

Our Most Popular Posts

  • A High-Speed Collision with Reality
  • Will the UAW Get What It Wants?
  • New York Finds a New Way to Harass Gun Owners
  • Americans Are Not Happy with Bidenomics
  • Ron Paul Exposed the Fed and the Neocon Scam
  • Don't Tread on America's Children
  • Bidenomics Gutting Real Household Income
  • “I Want to Be a Farmer, a Garbageman, or Tom Brady”
  • So Much for Mozart
  • Wellington and Wellesley Funds Not Managed by Vanguard

Compensation was paid to utilize rankings. Click here to read full disclosure.

RSS Youngresearch.com

  • Wellington and Wellesley Funds Not Managed by Vanguard
  • Inflation Could Kill Social Security
  • Will the Fed Hold Up Its End of the Bargain?
  • Should America Move Closer to the Saudis, or Push them Away?
  • Don’t Ask Me When to Haul Your Boat
  • Robot Warehouses Need Better Internet
  • California Mandates Drive Diesel Truck Buying Spree
  • Americans Are Not Happy with Bidenomics
  • Paris’s Big Plans for the Champs-Elysées
  • A Plan for Cutting Federal Government Spending

RSS Yoursurvivalguy.com

  • Wellington and Wellesley Funds Not Managed by Vanguard
  • Remembering Jimmy Buffett: The Oldest Surfer on the Beach
  • The Folly of Windmills from Nowhere USA
  • NYC Rolling Out the Robocops
  • Will the Fed Hold Up Its End of the Bargain?
  • Are Most NFTs Now Worthless?
  • 2ND AMENDMENT ALERT: Biden to Create New Anti-Gun Office
  • Don’t Ask Me When to Haul Your Boat
  • You May Be Surprised by America’s “Least Woke City”
  • GREENWASHING: What’s in a Name?

US Treasury Yield Curve: My Favorite Investor Tool

Five Year Treasury Yield

Speaking of Bad Ideas …

The Single Worst Market Timing Event in History

Your Survival Guy Fishing with Dolphins

“But What Happened to Eggs?”

Copyright © 2023 | Terms & Conditions | About Us | Dick Young | Archives