Reddit Posts
Who's the target demographic for HYSAs -- if I already have a brokerage account and access to decent Money Market funds, would I still want to open a bank HYSA?
Fidelity Bloom with over 4% yield as a Checking Account?
Best Money Market on Fidelity to hold money until the fall
For those using money market funds as a vehicle of interest accrual, which one are you in?
Confusion about Fidelity money market funds..
Anyone else sitting on too much cash? What’re your plans this year?
Mentions
Well the USA gov will need low rates to borrow against to pay their debt so rates will need to go lower at some point within next few months which will just push assets higher. So that’s why I’d say DCA averaged over next few months. Keep your money in fidelity’s SPRXX money market fund. You’ll be getting 5.05% interest currently
College student Inherits $800k Buys $700k worth of Intel on Robinhood OP plans to bag hold and not touch the money considering his parents are paying for his education (or lack thereof) Peak regarded  Open a Fidelity account and stick the money in SPRXX for the time being for fuck's sake
SPRXX 7 day yield at Fidelity still showing over 5%. That’s where I’ve been parking my savings money
Use SPRXX instead of SPAXX.
Better rates...SPAXX is currently below 5%, SPRXX is 5.02%, and TTTXX is at 5.19%
It depends on the fund some money market funds will only hold goverment backed assets at fidelity SPAXX SPRXX however gives a bit higher yeild but invest in some corporate debt meaning there is a very small default risk SGOV only invest in 1-3 month treasuries Technically its not FDIC insured but if you are putting money into SPAXX or SGOV you are backed by the full faith and credit of the USA goverment what is basically the same thing as FDIC insurance because FDIC insurace is backed by the full faith and credit of the USA goverment
No real catch. Money you deposit in a savings account isn't just sitting at the bank -- banks lend it out at a higher rate to people looking for loans, stuff like that. That's just how banks operate. With some handwavey not-quite-true disclaimers, they can borrow from the Fed at the effective federal funds rate, which is currently 5.33%. The terms are not quite as great borrowing from you (you can take back your money any time) so they can usually offer a rate somewhat below the federal funds rate on something like a savings account. If the Fed reduces the federal funds rate, banks usually reduce savings account rates in response. So back during Covid, you probably couldn't get very high savings account rates because the Federal Funds rate was near zero. Another place that offers good, relatively risk-free rates are money market funds through your broker. For instance VMFXX (Vanguard), SWVXX (Schwab), SPRXX (Fidelity) are all paying over 5% right now. They have the same caveat, that their rates will drop if the Fed drops the effective federal funds rate.
Only option I’d consider here is to buy 3 or 6 month t-bills (can do at Fidelity) which will earn a few bp more and also be exempt from state tax. But no SPRXX is a good option.
Pro tip, you can use something like FZDXX (Premium MM) or SPRXX to hold your cash and get more interest while still writing CSP against that cash. As long as it is a Fidelity MM fund, you can still use it like cash.
\*SPRXX for a little bit more.
Look into SPRXX for some extra yield.
Not too early, but you generally want to avoid investing money you need. I don't know how much you'll need for uni, but your first goal should be getting that money and having it somewhere safe -- actually getting that degree is more valuable than the retirement fund at 18. The rule of thumb for what to aim for is a year of expenses sitting somewhere safe like a high yield savings account or money fund. But if you anticipate not working while going to school, more is better. WRT retirement funds... I'd suggest going to one of the big three brokerages (Schwab, Fidelity, Vanguard) and opening both a brokerage and Roth IRA. You can throw some amount in both accounts just so you've got them in place. In the Roth IRA, you can investigate options for what to invest it in, but a S&P 500 mutual fund or ETF seems like a good place to start. Even if it's just 1 share of VOO or something, at least it exists and can be part of your financial picture. In the brokerage, if you don't want the risk of losing money, there'll be a money fund available (SWVXX/SPRXX/VMFXX for Scwhab/Fidelity/Vanguard). Share price is always $1, and interest gets paid out as dividends. With dividends reinvested, works kind of like a baby savings account inside the brokerage account. They all pay 5-5.3% right now. You'll receive tax forms from the brokerage every year during tax season. You probably already receive similar forms from your bank account, since interest in your savings account is taxable.
(Schwab) SWVXX - 5.14% (Fidelity) SPRXX - 5.04% (Vanguard) VMFXX - 5.27% Seems close enough to not sweat the difference.
Robinhood's rate is 5% if you have Gold no? So $5/month to get 5%. I'm pretty sure Fidelity right around there, there's kind of a reason why SPAXX is the largest money market in the world dude. As of April 19th, 2024 [SPAXX's 7-Day Yield is 4.95% without any subscription fee](https://fundresearch.fidelity.com/mutual-funds/summary/31617H102) [FDLXX's 7-Day Yield is 4.93% without any subscription fee](https://fundresearch.fidelity.com/mutual-funds/summary/31617H300) SPAXX and FDLXX both operate as cash sweeps, so you can make trades, use your debit card (ATM fees refunded on CMAs) or free wire transfer to other accounts [Vanguard's VMFXX's 7-Day Yield is 5.27% without any subscription fee](https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx#) FDLXX and VMFXX are heavily composed of U.S. T-Bills, states are not legally allowed to tax you on the interest generated from T-Bills. [Use the Money Market Optimizer yourself and click on the VgBestNow and Fidelity BestNow tabs and look for yourself](https://docs.google.com/spreadsheets/d/1ybZv8xuZ1KGSPn4y2gDEycPQX0KJpLbuzFg3hUReJB4/edit#gid=1574271208) If you live in a state with state income tax: **Your After-Tax Yield from Robinhood is guaranteed to be lower than FDLXX or VMFXX** **If you live in a state without state income tax, then you're losing cash at Robinhood when you could purchase SPRXX instead and achieve the same cash sweep capabilities** So your After-Tax yield is lower with Robinhood and then you spend $60/year for that privilege. Make the numbers make sense to me dawg. That doesn't even include the cheat code of purchasing [BlackRock's Institutional TTTXX Fund at 5.18%](https://www.blackrock.com/cash/en-us/products/282697/blf-treasury-trust-fund) through Merrill Edge to avoid the $3 million dollar minimum investment requirement. > The 3% match also includes ongoing contributions forever. But part of that 3% match deal is you have to keep your money at Robinhood for 5 years regardless of their behavior to keep the match. I'm not knocking anyone for taking advantage of the 3% match but the company behind it doesn't have the best track record in terms of systems design and management: ControlTheNarrative, IR0NYMAN, GME. . . But this message isn't for you /u/E_coli42, it's for anybody else that stumbles across this post and hopefully realize they should do their research into their brokerages and not blindly dump all your money into one without knowing what they're about.
Come on, that's 3 accounts. If you can't keep track of that you need to work on your organization. However, if you want you could just put everything in Fidelity. A brokerage account for investing and a cash management account for savings and spending. The cash management account is basically a checking account, but you can put savings in their MMF or other ETFs. I have SGOV as my emergency fund and SPRXX as my fun money fund in the Cash Management account. Their settlement fund can only be FCASH, but you can hold only your regular spending money in that like you have at the credit union.
Hi All!! I graduated from college last year, am now making about 50k (in a fellowship position, so no 401k available yet) and want to think about investing for the future. I have a slew of random conservative ETFs and such I dump into now and then (VOO, VTI, QQQM, SPY, etc) and money in cash funds if that's what they even are (SPRXX, FDRXX, FXAIX, etc) and a few random stocks here and there (google, apple, Microsoft), but truly I have no idea what I am doing. I wanted to ask about any advice you wish you had at 22 when it came to managing your money. Is a high yield savings account needed? how do I make one, where, how much do I put in? Should I open a Roth IRA? How do I learn what the hell that really is and what I need to do to have one? Where should I be learning this kind of stuff? I'm currently saving over $1000 a month but its just sitting in a checking account... so please lmk what I should be doing that's a little bit more risky than this because I know I'm young, but also not too crazy like trading stocks, which I am simply not cut out for.
Hi All!! I graduated from college last year, am now making about 50k (in a fellowship position, so no 401k available yet) and want to think about investing for the future. I have a slew of random conservative ETFs and such I dump into now and then (VOO, VTI, QQQM, SPY, etc) and money in cash funds if that's what they even are (SPRXX, FDRXX, FXAIX, etc) and a few random stocks here and there (google, apple, Microsoft), but truly I have no idea what I am doing. I wanted to ask about any advice you wish you had at 22 when it came to managing your money. Is a high yield savings account needed? how do I make one, where, how much do I put in? Should I open a Roth IRA? How do I learn what the hell that really is and what I need to do to have one? Where should I be learning this kind of stuff? I'm currently saving over $1000 a month but its just sitting in a checking account... so please lmk what I should be doing that's a little bit more risky than this because I know I'm young, but also not too crazy like trading stocks, which I am simply not cut out for.
Cash saving? If you mean what I have in savings...I have 15k just sitting in my brokerage. I use fidelity, and have 15k in SPRXX for emergencies.
A treasury money market fund follows the federal funds rate minus the overhead for that fund to achieve its $1 NAV and settlement times that are typically quicker than an ETF. An HYSA follows whatever the bank thinks will get it more depositors and typically yields anywhere from 0% to the federal funds rate. The bank can raise or lower it at will and it doesn't efficiently follow the market. You didn't mention it, but an ultra short-term or floating-rate treasury fund does what the treasury money market fund does except without the overhead of achieving a $1 NAV. So, an ETF like USFR can yield 5.4% vs a money market fund like SPRXX yielding 5.09%. The main drawback with these funds is most brokerages won't allow you pull out funds until the trade settles (2-3 business days). The benefit of a treasury fund (whether MM or not) is that you will always get the market rate. If you've dealt with HYSA for long, you'll know chasing the best yields will have you switching banks every month since their strategy is to raise HYSA rates to get new depositors and hold or lower them in hopes that the depositors don't care enough to leave.
Should use SPRXX. Just a little better.
5.25% APY at Vio Bank 5.39% 30-day yield on $USFR I use Fidelity for my checking account. 5.07% 7-day yield on SPRXX means 5.07% just for my checking account.
Search for "Prime Money Market". For example, compare SPRXX with SPAXX -- Fidelity funds. Find something comparable in Chase's universe.
So just continue to keep a large portion of my liquidity in SPRXX?
Yeah I use to use Vanguard so you have fun with that website from the 1990s and the worst customer support of the big three. They do have probably the best MMF though. Still 7-day yield on SPRXX is 5.05%, SPAXX is 4.98%, VMFXX is 5.29%, the various 3 month ETFs are ~5.2%. Unless your net worth is all in cash it is unlikely to move the needle.
You have to look at the 7 day yield because that’s what the net payout is. VFMXX is 5.29% and SPRXX is 5.06%, there’s only a difference of .23% it’s not very big. For me that would be a 2-3 dollars interest a month. It’s not worth switching to vanguard for that.
You mention SPRXX and SWVXX but they both have a NAV of around 3.7% and a 0.40% expense ratio, so why would I pay a fee for more or less the same return I could get in a HYSA? Plus if I'm already contributing to a 401k and an IRA, why would I want another investment account when I can just have a HYSA?
> Which do you keep yours in ? FZDXX > SPRXX > SPAXX. 5.17% - 5.05% - 4.98% current 7-day yields. (Note FZD has a $100K Min.)
See also, if you're already at Fidelity: FZDXX > SPRXX > SPAXX. 5.17% - 5.05% - 4.98% current 7-day yields. (Note FZD has a $100K Min.)
Also consider SPRXX ... and if you have the minimum, FZDXX.
They usually have multiple money funds. SPAXX is the one that gets mentioned most often, but there's SPRXX, FTEXX, etc.
https://www.reddit.com/r/fidelityinvestments/comments/zw21c5/sprxx_vs_spaxx/ > SPRXX is a prime money market fund. It has a slightly higher yield in that it holds “riskier” money market assets, such as short term financial company commercial paper. > SPAXX is a government money market fund. It is one of the least risky money market funds, which is why it can be used as a core position.
>Looks like the 7-day on spaxx is 4.97% check out SPRXX. You can use it just the same as SPAXX but have to actually go in and buy it. 5.05% currently.
Treasuries are better, CIT bank is 5%, multiple oney market funds (SPRXX 5.04%, PRTXX 5.37%, VMFXX 5.27%, etc, etc) If there is one product I'd avoid like the plague it's Robinhood.
The big ones are over 5% 7 day yield. Better than a HYSA. VMFXX - 5.41% VMVXX - 5.22% SNSXX - 5.16% SWVXX - 5.37% SPRXX - 5.17%
FZDXX > SPRXX > SPAXX (at Fidelity), since you have the minimum for FZDXX. 5.16%, 5.04%, 4.97% current 7-day yield.
That's not what we're talking about... Fidelity's settlement fund is invested in SPRXX. It has an expense ratio of 0.42%. Vanguard's is VMFXX. It's an expense ratio is 0.11%. You give Fidelity an extra 0.31% for cash you just have sitting there. How did you equate 5% with the S&P 500?
Use one of the Fidelity money funds. I like Fidelity SPRXX.
Fidelity is a brokerage it is not a bank so they cannot offer bank accounts but the good thing is there is nothing wrong with just keeping your money in a brokerage With fidelity you can simply buy Money market mutual funds these are very safe some only invest in govt backed assets so they are essentially as safe as banks and pay 5% plus currently With Fidelity SPAXX only invests in govt backed assets so its as safe as a bank account. Current yield is about 5% Their prime fund SPRXX offers slightly higher yield but much of this is in short term corporate debt, I personally do not have an issue putting money in these accounts as they are still very very safe
Every brokerage has an S&P500 index fund, and every brokerage has a Total Market fund ... and every brokerage has a series of Money Market funds with varying objectives, on the spectrum from "risk-free" government-stuff only to state-specific funds to GodKnowsWhat. Mutual funds of that type have a trading symbol ending in **XX** rather than just one X. Schwab's has SWVXX, Fidelity has SPAXX/SPRXX/FZDXX, among many others. Use your bkg's Research tools to look for "Money Market". For example, I just shifted some loose cash into FZDXX, because I can meet the minimum investment and that share class gets me like 12 or 15 basis points more than SPRXX. It'll be fine until rates start coming down again, so I've got ~6-9 months to think about what to do next with very little risk of Loss of Capital.
Money market funds don't have profits; they distribute yield which is taxed as ordinary income along with your wages. So it's your own federal marginal tax rate and state tax situation that determines how much you'll owe. As such, everyone's situation is different with regard to finding a MMF that delivers higher net (post-tax) income despite having a lower gross yield percentage than some other funds. MMF invested in municipal bonds would potentially be totally tax-exempt. MMF invested in 100% treasury bills/bonds would be state tax-exempt. The specific MMF available to you are usually determined by your broker. At Fidelity for example, there are numerous - SPAXX, SPRXX, FDLXX, FDRXX, FZDXX, etc. Do some research on your broker's site and find out your choices.
It think it would take less than an hour to open up a new account somewhere, e.g. a HYSA at Discover or Ally where you'd get around 4.3%, or a CMA or brokerage account at Fidelity where a simple money market fund like SPRXX would yield closer to 5%. All of those funds would be nearly instantly accessible or transferable to other banks if needed. That's $650-750 annually you're leaving on the table right now. Not bad for an hour's work. The additional liquidity of a checking account is negligible.
You can buy shares of any money market fund in any account. Whether that MMF can be a core position is another story. But buying it is easy. FDLXX at this writing has a 7 day yield of 4.88%, which when compared to SPRXX at 5.03% is a higher post-tax yield in my state (NJ). You do have to keep tabs on these rates though. A couple months back, this was not the case. So if you're obsessive about a few basis points, check regularly.
1. SPRXX has an expense ratio of 0.42%, which is in line with what you should normally expect for a money market fund. Vanguard's VMFXX is an outlier at 0.11% - I guess this is because Vanguard has always prioritized getting operating costs as low as possible. 2. No. When you put money in a bank, you are effectively loaning the bank money, with the expectation that they will pay you back whenever you want. They make a profit by loaning your money with interest to other people, or buying long-term financial assets. By contrast, a money market fund is a financial asset that you buy, and the people who manage that asset make a profit by skimming a little bit of its value off the top. The expense ratio is the proportion of the total value of the asset that they skim off the top each year. 3. \^\^ 4. Don't try too hard to earn a return on your rainy day fund. Earning a return requires taking risk, and the whole point of this money is to protect you from risk. Put your money in a reputable FDIC insured bank account and don't worry about it - it's not hard to find a bank that pays around 4 - 4.5% these days, and that's plenty. if you're saving and investing money every month then before long $25k will be a minor portion of your net worth.
Or a CMA at Fidelity and buy SPRXX or SPAXX.
Thanks. I looked up online based on your feedback, best recommendation I could find was SPRXX at 4.8%. Any thing better?
SPRXX has higher risk than SPAXX. That's why it pays a higher rate. T-Bills pay more but carry access/ market risk. You get what you pay for.
SPRXX is a MMF. Both serve their purpose.
If you like Fidelity funds, and have been using SPAXX, consider moving to SPRXX. If you can meet the minimum, move along to FZDXX. But like u/SirGlass said, the difference in rates is marginal. Go for it if the difference betweeen $100,000 and $100,200 is important to you. > I’m just noticing the expense ratio of 0.42% Money market funds HAVE to be actively managed. There are no index trackers here.
Ok got it. I appreciate your responses, thanks! Also it may have happened because I initially bought $25,000 worth of SPRXX then realized when all the cash settled I wanted SPAXX. So I sold the SPRXX bought SPAXX and like a day later it went from $37,000 to $37,003.29 which confused me.
There’s no universal answer. With regard to low-risk investments, people in higher tax brackets will tend to benefit from investments with more tax exemptions, whereas those in low brackets are better off seeking higher before-tax yield. A prime money market fund often has the highest after-tax yield for low- to middle-income people. A Treasury fund exempt from state and local tax or a home-state muni fund exempt from all income tax might be better for high-income people. The available mutual funds depend on which broker you use, but ETFs can be purchased anywhere. Examples: Prime money market funds: VMFXX, SWVXX, SPRXX State/local tax-exempt Treasury funds: SGOV (ETF available anywhere), SNSXX, FDLXX Home state muni funds: VCTXX (California), SWYXX (New York), FSJXX (New Jersey) Muni funds are exempt from state and local tax only if the bonds are issued by your home state. So VCTXX is fully tax-exempt for Californians, but residents of other states would owe state tax. When taxed, bond income is always taxed as ordinary income. A fund that holds US Treasury bonds like SGOV has the same tax exemptions as directly holding the bonds yourself.
>.What should be my order of investing for maximum tax benefit? 401k up to employer match > HSA > Roth IRA > 401k after match > individual brokerage >Roth IRA: I'm having a bit of trouble understanding how this helps exactly, could someone just go into greater depth, specifically why this would make sense viz-a-viz a 401k? A 401k is offered through your employer and you are limited to specific funds your employer offers. Not all 401k are great some offer a limited number of funds some have some high fees. A IRA or Roth IRA anyone can open independent of their employer, and if you open one at a brokerage like fidelity/vangaurd/schwab you can invest in just about anything and get access to many low fee investments . The draw backs is you can only invest about 6.5k so its not really a matter of choosing a Roth IRA vs 401k its just another account you can utilize . With a Roth IRA you do not get any deduction when you contribute to it, however your money grows tax free and you can with draw it tax free. If after 40 years of contributing to a Roth IRA you have 1 million dollars, you can with draw that 100% tax free. That is the benefit >ETFs: I've heard of QQQ, VOO, VTI, which some of my friends are already invested in. How does this differ from an index fund? All of those are types of index funds. An index fund is just a generic term for a fund that passively follows some index, QQQ, VOO , VTI are examples of different index funds. QQQ follows a nasdaq index of I think the top 100 non financial stocks listed on the NASDAQ what tends to be tech heavy so its sometimes considered a tech fund but its technically not a tech fund it just happens to hold a lot of tech companies VOO follows a different index the S&P500 index what basically is the 500 biggest companies based out of the USA VTI is a total market fund that holds almost all public traded companies in the USA (3000+) >Is investing in these a good long term-strat, where I can just forget about my money? Yes the key is LONG term , short term these can swing wildly and drop 50% in a short time however they tend to be great LONG TERM (20-30 years) investments >Money Market Funds: I was thinking of moving most of my money from my bank to an MMF like SPRXX Yes these are good safe options for investing the yield is an estimated ANNUAL yield however these change with short term rates. If short term rates fall the yield will also fall. Most have no holding period and pay interest monthly . If you hold for 5 days you would get some prorated amount of interest and there is no lock up period besides the 1 day to buy and 1 day to sell. Meaning if you want to get out you will have to wait 1 day. CD and treasuries are also safe investments , Once again the rates are annualized. Treasuries have the benefit of being exempt from state taxes >but this is a good place for me to get started. I would start here https://www.bogleheads.org/wiki/Getting_started
Hi r/investing, I'm a 19-y/o international student in the US. I'm interning over the summer, which means I've gotten my SSN and I'll be making about \~30k USD. I don't want this money to rot away in my Chase checkings account with 0.05% APY, so I'm trying to understand what I can do with it. A lot of internet research has led me to understand that opening a brokerage account is the best move forward. I'm planning to open an account with Fidelity, but if that doesn't pan out (it is tricky while on CPT), I might have to use the much-hated Robinhood for a couple years before I can move out full time. I have a few questions about the low-risk options I've seen. For reference, I study in CA, plan to work in CA (I'm in tech), and maybe move to NY full-time, so I know tax rates will be high. What should be my order of investing for maximum tax benefit? ROTH IRA, 401k (offered by my company), ETFs, Money Market Funds, CDs, Individual Stocks. Can all of these be done via Robinhood? I know Fidelity works for all. ROTH IRA: I'm having a bit of trouble understanding how this helps exactly, could someone just go into greater depth, specifically why this would make sense viz-a-viz a 401k? ETFs: I've heard of QQQ, VOO, VTI, which some of my friends are already invested in. How does this differ from an index fund? Is investing in these a good long term-strat, where I can just forget about my money? Money Market Funds: I was thinking of moving most of my money from my bank to an MMF like SPRXX, which has a 7-day yield of 4.79%. This almost sounds too good to be true, but I'm curious: is my money locked in for a certain period of time? Or can I liquidate whenever I please? How is this money compounded? Is it 4.79% over a year? If so, do I get any benefits if I pull it out in say 3 months? CDs: This seems like another fantastic option to just leave my money. New issue CDs on Fidelity have 5.35% interest rates in 3 months. Again, what are the pros and cons for these over MMFs? Again, how is this compounded? I do have a ton of other questions, but this is a good place for me to get started. Is there any other general advice I should keep in mind as I begin my investment journey? If someone is willing to mentor me, I'd be more than happy to DM.
Yes the rate changes and it's pretty great right now. performance just by clicking on the position in your portfolio. The SPRXX does slightly better. Interest compounds monthly and I think they prorate it somehow because I earned interest on monies deposited in the last week of the month.
> To sum up, WMPXX is riskier than common MMFs only because it’s a prime MMF vs government MMF, not because it’s from WF/Allspring, correct? So, compared to other prime MMFs, like SPRXX or FZDXX, there’s the same amount of risk. Yup, well put. Those would be a more fair comparison between all the MMFs. > That’s how I felt about WF—too big to fail. But hearing people talk about them as if they should never be trusted with any money made me concerned. Between unauthorized accounts being opened without customers' consent to auto loans being repossessed even though the borrowers were making payments on-time, are just a few of the many failures of the WF's internal systems and its leadership. I personally only use them for convenience's sake since they have enough branches around my local area (though, more and more branches have started closing). But I personally wouldn't trust them (and, honestly, any of the "big banks") beyond that because I worked there for close to a decade and have only seen it get progressively worse.
Thank you for the detailed reply. My monthly fee will be waived, so the account will basically be fee-free. I was actually surprised by how many fees they waived for the Premier checking account (which makes sense considering the amount they require for waiving the MSF). I have Fidelity’s CMA, and I agree that it’s a great account model. It turns out that WellsTrade is actually very similar to Fidelity’s CMA albeit no MMF auto-liquidation function. To sum up, WMPXX is riskier than common MMFs only because it’s a prime MMF vs government MMF, not because it’s from WF/Allspring, correct? So, compared to other prime MMFs, like SPRXX or FZDXX, there’s the same amount of risk. That’s how I felt about WF—too big to fail. But hearing people talk about them as if they should never be trusted with any money made me concerned.
Look at money market funds. Fidelity or any major brokerage is paying over 4% and they are liquid like cash. I keep my money in SPRXX.
Hello. I want to invest tens of thousands of USD for about a year at low risk. I'm in Cyprus. I have an account with IBKR. I considered different options: * Bank deposit. Unfortunately, Cyprus banks only offer near-zero interest rates. * Just holding money on IBKR, they offer some interest on cash balances. For me, it would be \~4% in USD. * Buy SPRXX. As I understand they are paying 4.56% now and it depends on the current official interest rate. * Buy US Treasury bonds. It looks like it is possible to get more than a 5% yield if I understand everything correctly. (Or maybe some EU country bonds, are in EUR, but the yield would be lower) What are my other options? If going with US Treasury bonds, what should I expect? Is it actually possible to buy them? Is it possible to wait for maturity, how long will it take for the money to return in that case? Does IBKR take some commission for handling maturity?
>should you sign-up for some exotic Money Market? probably not. Money market funds holding repos and agency paper are not considered exotic. The money market mutual fund that you mentioned SPRXX holds 60% treasury repos and 11% agency repos.
Can you break the buck? sure, it's happened..... should you sign-up for some exotic Money Market? probably not. Is one of the big ones just fine in almost every circumstance? yup. Does that mean you can dump your money in and never pay-attention to what is happening each day in the market/world? nope. Is there some magic difference between SPRXX and SWVXX,PRTXX, IPPXX and MJLXX? I ain't seen it...
SPRXX (no min) and FZDXX (min 100k brokerage, 10k ira)
You know what? Good. The 2-4% that they charge on top of the 10yr bond for a 30 yr mortgage is is nasty. Just a middle man between them and the federal reserve. Interest is a huge waste of money and holds people back. The first payment on a mortgage of $400k amount at just 6% is about $2k and then it goes down by like $1 dollar the next month until it starts very slowly snowballing down to less interest. I know you need a down payment but this is an example. Paying an absurd amount of interest on something these banks are making tons of money off of you. No interest to very little allows someone to actually grow their wealth more and faster. I first started about investing 3 years ago and knew some more about it more than that ago but didn’t invest because of no money and didn’t know much about it. But now I manage my money all myself. Used to use a bank to keep my cash and they probably made a ton of money off of me. Now every dollar is in money market funds at fidelity at SPRXX. When I get paid or cash out my cash back from credit card company and goes to my bank account and I forget to buy Fidelity’s money market fund of higher interest even of one day of my money sitting in FDIC sweep at more chase bank from fidelity at like 1.5% interest I get mad because I’m not earning interest for that day and I dislike banks so much and not earning money myself. Yeah their depositors are making them less money. LMAO. People need to understand that with everything in banks and making money you are the customer and employer. You’re giving them money to make money off of you. I hope everyone moves to money market funds. The bank is the employer because they give you interest and very little but you’re the customer to them. Also you’re the employer to these banks because you allow them to make money and the bank is also the employee because they need you to make money. It’s sick and I’ll never go to a regular bank or commercial bank again. Middleman business for you.
I did the same thing late last year. Moved from my HYSA to SPRXX at Fidelity. If HYSA account goes to a higher interest rate then I'll move back.
Yeah you can read about it on their [site](https://www.fidelity.com/mutual-funds/mutual-fund-spotlights/money-market-funds). They automatically sweep cash in brokerage to one of the money market mutual funds you choose (preset list though). And they'll automatically convert it to cash for bills. You can use their routing and account number just like a checking account. I've tested it. The current 7 day yield for SPRXX is 4.5% and you get accrued interest deposited first of every month.
I've had good luck with Ally, LendingClub and Citizens Access for HYSAs. Avoid Citibank - they tend to freeze accounts and then they refuse to return your money. My brokerage is Fidelity - I use SPAXX and SPRXX there.
You mentioned that you wanted to park cash for 2 months. For 2 months - a money market fund is more liquid. SPRXX is a CA muni money market fund. That means that it's a money market mutual fund that has short average duration CA munis. If you are unfamiliar with what a money market mutual fund is - brief explanation in the FAQ here - [https://www.reddit.com/r/investing/wiki/faq/#wiki\_what\_is\_a\_money\_market\_fund\_and\_how\_safe\_are\_they.3F](https://www.reddit.com/r/investing/wiki/faq/#wiki_what_is_a_money_market_fund_and_how_safe_are_they.3F)
Is the SPRXX a type of muni?
Looks like FZDXX is a share class of SPRXX? Only reason I'm in SPAXX is because it's a core account. Can you use other money markets as collateral?
Yep. I have a HYSA earning 4.25% and I'm using SPRXX at Fidelity to earn 4.54%.
MM rates are not locked in and could go up or down. Right now they’re the highest they’ve been in many years. I invest through Fidelity and convenience influences the following: If I was handed a pile of cash I would put it in a Fidelity MM fund like SPAXX or SPRXX. The MM fund would be in a brokerage account. Once you decide what to do with the cash in the MM it is easily investable through that brokerage account. In the meantime your “idle” cash is still earning over 4%. MM funds are liquid so if market conditions change you can chase yield somewhere else.
FZDXX at fidelity. 100k ticket to ride (although other mm funds like SPRXX are over 4% without the minimum. SPRXX sits at 4.33% rn)
> What do folks do with cash in their trading account? SPRXX.
You thought about this a LOT more than I did. I picked SPRXX because it had a higher return. End of thinking...
Never heard of SPRXX. How significant is the difference in performance, after fees, between it and SPAXX?
I was planning on moving some cash into VUSXX, SPRXX, or VMFXX today based on recommendations in another thread, however, it looks like I cannot do this through my brokerage account (TD Ameritrade). What are the closest equivalents available on TD Ameritrade? Looking for relatively liquid, as I plan to move money out if a good stock buying opportunity arises.
I was planning on moving some cash into VUSXX, SPRXX, or VMFXX today based on recommendations in this thread, however, it looks like I cannot do this through my brokerage account (TD Ameritrade). What are the closest equivalents available on TD Ameritrade? Looking for relatively liquid, as I plan to move money out if a good stock buying opportunity arises.
>I use fidelity and my money is automatically funneled to SPAXX. I can’t seem to understand how to figure out the interest it’s yielding. Not to sound rude but have you tried to just look it up at the Fidelity web site. SPAXX - [https://fundresearch.fidelity.com/mutual-funds/summary/31617H102](https://fundresearch.fidelity.com/mutual-funds/summary/31617H102) \- 7-day yield as of 3/8 is 4.23% SPRXX - [https://fundresearch.fidelity.com/mutual-funds/summary/31617H201](https://fundresearch.fidelity.com/mutual-funds/summary/31617H201) \- 7-day yield as of 3/8 is 4.33% Fidelity offers access to 31 different money market funds including prime, government, and muni based funds. List here - you can sort and filter on whatever criteria you want - [https://fundresearch.fidelity.com/fund-screener/results/table/daily-pricing-yields/averageAnnualReturnsYear3/desc/1?assetClass=MM&category=TF%2CTM%2CXT&order=assetClass%2Ccategory](https://fundresearch.fidelity.com/fund-screener/results/table/daily-pricing-yields/averageAnnualReturnsYear3/desc/1?assetClass=MM&category=TF%2CTM%2CXT&order=assetClass%2Ccategory) For munis - you will have to drill into the muni mmf to get the tax equivalent yield. Fidelity provides a handy-dandy TEY calculator for bonds but should be useable for mmf - [https://digital.fidelity.com/prgw/digital/taxyieldcalc/](https://digital.fidelity.com/prgw/digital/taxyieldcalc/)
Search for trading symbols which end in **2** Xs -- SWVXX, SPRXX, VUSXX etc.
You can buy tbills directly for 5%. https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202303 Don't know what broker you have but money market funds should yield at least 4%. VMFXX yields 4.51%. SWVXX yields 4.27%. SPRXX 4.33%. Or a floating rate ETF like USFR 4.70% or tbill ETF like SHV 4.53%.
If you are going to make any change, there are many options. Here was my thinking (I have SoFi): * SoFi: 3.75 (pre-tax, liquid) * VMRXX/VMFXX/SPRXX: 4.52/4.52/4.35 (pre-tax) * T-Bills: 4.68+ (no state tax, risk a loss if selling before maturity if rates rise) * SGOV/VUSXX/SHV/SHY: 4.44/4.56/4.52/4.61 (~no state tax) * TFLO/USFR: 4.69/4.68 (~no state tax) For me, SoFi is now a second-tier emergency fund for direct deposits (to get 3.75%). Most cash was moved to USFR (larger than TFLO). I see it as a ~liquid 13 week T-Bill ETF without the maturity rate lag. **Considering 24% federal and 9.3% CA taxes USFR's 4.68% is ~5.33% pre-tax.** I don't have a taxable Fidelity account, I'd still pick Vanguard funds through my ETrade account or BlackRock's (lower expense ratio) funds. But that's really splitting hairs.
SPAXX is automatic. You have to buy SPRXX if you want higher yield.
Ok cool. Glad he wasnt trolling me haha. I'll stick with SPRXX then till my pockets get bigger
And SPRXX at 4.35%, the forgotten middle child Was FZDXX the one you needed 100k for or did someone lie to me?
The ticker MGPXX is a mutual fund. It's not an account that you would create. If you cannot buy that money market mutual fund, from what I see on the ETrade site - there are appears to be a bunch of other money market mutual funds that you can choose from. For example would be VMFXX which is a popular Vanguard money market mutual fund which has a current 7-day yield of %4.5. [https://www.etrade.wallst.com/v1/stocks/snapshot/snapshot.asp?symbol=VMFXX](https://www.etrade.wallst.com/v1/stocks/snapshot/snapshot.asp?symbol=VMFXX) I also see that popular Fidelity money market mutual funds may be available through ETrade - [https://www.etrade.wallst.com/etrade/v1/stocks/snapshot/snapshot.asp?symbol=SPRXX](https://www.etrade.wallst.com/etrade/v1/stocks/snapshot/snapshot.asp?symbol=SPRXX) I don't have an ETrade account so I can't tell if you can buy these mutual funds but they do appear to be NTF (no transaction fee) mutual funds available on ETrade.
Mine's in SPRXX, a Fidelity MM acct. I have the fixed-income part of my portfolio in several different styles of bond funds, so although I have seriously LOOKED at Treasury Direct for T-Bills, I'm a little sceptical that they'd be much better than what I already have for a lot less effort.
With the market down my current view is that I’m buying S&P and sector ETF’s at a discount. Most of my cash savings is now in SPRXX (4%+ Fidelity MM). I’m not a fan of DCA. When I have cash that I can put to work I put it to work and forget about it. I’ve been through Dot-Com and the Great Recession and my view is to stay the course. The closest I’ve come to timing is when the market kept going down during early Covid and I kept all investment contributions in my core cash account for a while. I’m set up so that all of my contributions go to cash and then I allocate. I could probably automate more but I enjoy placing orders.
I know there have been a lot of threads about this lately, but am still fairly unclear what the best option(s) are. I have around \~140k in an Ally HYSA which gets 3.40% and is taxable. I also have a fidelity brokerage account which I could use if I go money market route. I'm in Massachusetts, so state tax is at 5%. I've heard some people recommending various funds like: \- SPRXX \- SPAXX \- VUSXX \- Keep it in a HYSA What's the best choice, and why? Thanks!
The SPRXX fund I mentioned is a good one unless you are putting in 100k. You can go to their Products -> Mutual Fund page to see all of their money market funds.
Fyi SPAXX is the default for brokerage sweep but they have other money market funds with a higher yield. SPRXX pays a bit more and has no minimum investment requirements. There are others that pay more but have min requirements.
At fidelity you can buy SPRXX (4.35%) or FZDXX (4.47%) if you have 100k, both are better than SPAXX. Also, the expense ratio is irrelevant because the 7 day yield is calculated post-expenses. Typically the Vanguard money markets are a bit better than everyone else though.
Idk - ¯\\\_(ツ)\_/¯ - I bet there are some high income and high-net worth folks on Reddit. That said - muni tax equivalent yield benefits don't necessarily require being in the highest tax bracket especially if there is a choice to also use a state muni mmf. It really depends on the fund and the investor. For example - using Fidelity mmf's. Assuming FTEXX which has a yield of 3.46% as of 2/16. The TEY at the median federal rate of 24% is 4.47%. The pre-tax compounded yield on a prime SPRXX is 4.44%. So it's basically about the same for many people to your point. Buf if an investor lives in NY, the tax equivalent
Sorry - I was quoting the 1/31 month end yield. But as I stated FZFXX is a treasury money market fund. So prime funds will have a higher yield. 2/10 7-day yield on FZFXX is 4.18% with compound effective of 4.27% 2/10 7-day yield on SPRXX is 4.35% with compounding effective of 4.44% 2/10 7-day yield on FMPXX is 4.59% with compoil effective of 4.69% Not sure why you brought up fzfxx since the recommendation by u/enginerd03 is to use a non-treasury money market fund. fzfxx is not a prime money market fund. Everyone else has suggested a prime money market fund with FMPXX being the most likely appropriate fund for OP's use case. FZFXX is simply another treasury money market fund available through Fidelity's core money market sweep.
Fzfxx is not a prime money market fund. It's a government money market fund. Current 7-day yield is 3.96% and it will vary daily. Fidelity offers 4 different prime funds but they are not available as part of a money market sweep. The retail prime fund is SPRXX which has a current 7-day yield of 4.17%. A prime money market fund usually has a higher yield than government money market funds because prime funds can hold commercial paper as part of it's composition.
Money Markets like SWVXX or SPRXX now yielding 4%+