Thanks for the info. Now I know why Fidelity gives me 5%, Schwab. I have alot of short option positions, how would it impact my margin if I put the cash position in one of those fund?
Fidelitys money market, SPAXX pays a little bit less than Schwabs SWVXX and has a higher annual expense ratio. You’d have to check with Schwab about the ability to use SWVXX on margin but I believe you can.
When you get paid dividends from CDs, etc, it goes into a regular savings account that only pays .48%. You need to move/ reinvest that into something that pays higher interest, like a CD or money market account that could be currently be paying 5%. 5% is 10x .5%.
Thank you for this info. It was news to me and I should have learned this before . But now I know!!!
SEC yields are already net of expense. You don't further reduce the yield by the amount of the expense.
Thank you for the comment, I now see that the annual expense ratio is subtracted in calculating the 7 day yield.
Thank you!
Thanks for the info. Now I know why Fidelity gives me 5%, Schwab. I have alot of short option positions, how would it impact my margin if I put the cash position in one of those fund?
Fidelitys money market, SPAXX pays a little bit less than Schwabs SWVXX and has a higher annual expense ratio. You’d have to check with Schwab about the ability to use SWVXX on margin but I believe you can.
Where does the 10 times come in?
When you get paid dividends from CDs, etc, it goes into a regular savings account that only pays .48%. You need to move/ reinvest that into something that pays higher interest, like a CD or money market account that could be currently be paying 5%. 5% is 10x .5%.
If you purchase SWVXX it pays 10 times the default sweep money market in Schwab accounts.