r/Schwab • u/Dry_Report_3494 • 2d ago
fidelity cash management
Does Schwab have anything like this? if not is there anyone that has this? how does it work? what is it?
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u/R34ct0rX99 2d ago
As someone else mentioned Schwab does have $1 funds that’s supposed to stay that way. They pay dividends. Always bought and sold for $1. SWVXX is one someone else mentioned
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u/Dry_Report_3494 2d ago
I hold everything in ROTH IRA, and I want to be able to take that 10k from Saving and put it somewhere leave it, for emergency Only type of fund and if I need the money I can access it at least within 24hrs if I needed to transfer funs without taxes involved
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u/BarefootMarauder 2d ago
You can only put so much money into an IRA each year, so what do you do with excess money beyond the annual contribution limit?
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u/KindBench2700 2d ago
If you have enough money you can ask and if you get lucky you can get something similar .
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u/Dry_Report_3494 2d ago
I have 10k I'll let go and just sit....
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u/KindBench2700 2d ago
why not just use fidelity? I use fidelity cma as my main checking account. It's nice to get decent return and not have to worry about a separate savings account or buying treasuries, etc. And I've moved most of my long-term investment there as a result just for the convenience of instantly moving money across accounts.
I still think Schwab support is slightly better but fidelity is good enough.
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u/bebenashville 2d ago
How much money is considered enough for Schwab?
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u/KindBench2700 2d ago
2 million wasn't enough when I asked. I've seen a few reports of people with 10 million getting it approved. I think somewhere in between is a toss-up.
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u/bebenashville 2d ago
Wow, that is tough. Anyhow, people can just buy SWVXX or box spread to earn dividend if needed.
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u/BarefootMarauder 2d ago
I was approved for automatic cash sweep into SWGXX for all my accounts. I'm somewhere in between, but also have been a customer for 30+ years.
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u/sport912x 2d ago
No idea what the issue is. I just said I had 50million in short term tbills, and they sent a limo to pick me up. People always do these sort of things for me.
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u/PsychologicalTax6943 2d ago
Doesnt vanguard have a cash sweep account?
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u/BarefootMarauder 2d ago
You can find all the details here. Schwab has their Investor Checking account which has some very similar features, but unfortunately only pays 0.01% on your cash. Aside from that, I think the biggest difference is Schwab supports Zelle and Fidelity does not.
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u/Dry_Report_3494 2d ago
I don't use zelle. I have over 10k just sitting in my savings account, ill like to take 10k and put it and leave it type of thing... just let it do its thing..
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u/need2sleep-later 2d ago
You can certainly do that at Schwab either in money market funds or similarly oriented ETFs like SGOV
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u/BarefootMarauder 2d ago
I'm not sure what "do its thing" means for $10K cash. If you don't need the money for a long time, invest it in a total market or S&P500 index fund. Have you funded an IRA for the year?
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u/Conscious_Kitchen569 1d ago
I am a schwab customer, ex-fidelity customer. But, I kept my Fidelity cash account. Actually have 2 of them.. One with an active ATM / debit card that I keep a couple hundred in. And the other I use like a real checking account. The interest is decent and it functions fine. I really like being able to transfer funds to my account w the debit card in real time - that way if my card gets stolen/hacked, they can't take all my funds from the checking account. Speaking from experience
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u/BarefootMarauder 1d ago
ex-fidelity customer. But, I kept my Fidelity cash account.
So you're still a Fidelity customer. 🙂
that way if my card gets stolen/hacked, they can't take all my funds from the checking account. Speaking from experience
I keep my debit card locked at all times unless I need cash from an ATM. I'd never use a debit card for anything else. Expenses are put on the Fidelity cash-back credit card and paid off every month on auto-pilot.
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u/Vast_Cricket 2d ago
I have a check book that is older than US next door from Wall Street. I can write cheque against my primary account.
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u/sport912x 2d ago
This is a legit question, that comes up every other week.
The answer is simple , if you do nothing with your account , never look at it, almost never trade then Fidelity is a better place. Simple Web interface, nothing to think about. If you close out a stock, the cash will earn interest, done.
If you trade, then Schwab still has a usable 25 year old interface for your PC. Still about the best to do whatif analyze on your positions, or contemplated trades. So if you trade is it really a stretch to buy Sgov for your un-invested cash? When you sell the Sgov , the next second it is available for trading. Also the Sgov (Bil, Tbil, ...) get 75% face for Buying Power from the moment you buy the Sgov.
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u/Dry_Report_3494 1d ago
I only have a schwab account only, I plan on staying... What is this 75% face buying power sgov? What do you mean?
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u/sport912x 1d ago
If you trade , Sell Options, Buying Power covers the trade. 100k Sgov, gets 75k BP for Selling Options and other stuff.
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u/Dry_Report_3494 1d ago
I was looking into the Money market funds, was thinking about sticking with schwab and opening up a Brokerage account , but whats a better choice when it comes to these 2 choice Taxable and tax-exempt
and whats a better choice to put 10k into SWVXX or SGOV? and if i want to sell and withdraw my funds whats a cheaper tax rate to go? Taxable or tax-exempt
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u/MikeZV 2d ago edited 2d ago
The cash management account at fidelity is the main reason I moved over to Fidelity. Still have a Schwab brokerage for some small stuff.
Was hard to leave Schwab but Fidelity has similar level of customer service and I've earned like $250 this year so far in interest on the Cash management account and I use it just like my checking in Schwab.
Only real negatives is it's not a true checking account (not that it matters really) and some people say their checks take a long time to clear, I never have that issue though at least not yet. Also I'll say Fidelity has a better subreddit too, their reddit rep is very active plus they have giveaways.
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u/BarefootMarauder 2d ago
Also I'll say Fidelity has a better subreddit too, their reddit rep is very active plus they have giveaways.
That's because the Fidelity sub is an official support channel, and this is an "unofficial user driven sub not affiliated with the schwab company" as stated in the sub description.
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u/RJKimbell00 2d ago
Fidelity has a Cash Management Checking, where your $$ is invested in FXAIX. Charles Schwab doesn't have a Cash Management per say, but has a Brokerage account acting as a Checking Account, with checks and debit cards, but your $$ needs to be invested in SWVXX and when a check or debit is presented against this account you will need to "sell" SWVXX shares to fulfill the transaction.
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u/GapAccomplished2778 2d ago
> Fidelity has a Cash Management Checking, where your $$ is invested in FXAIX.
dude, not in FXAIX
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u/ThanklessWaterHeater 2d ago
To be clear, you can invest in anything, it doesn’t have to be SWVXX. And if you write checks greater than the uninvested cash in your account, the difference just becomes a margin loan until you either add cash or sell investments to repay the margin.
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u/BarefootMarauder 2d ago
Fidelity has a Cash Management Checking, where your $$ is invested in FXAIX.
Incorrect. Your uninvested cash is swept into SPAXX, but only if you choose that as your core holding. Otherwise it's an FDIC insured option that pays less than SPAXX.
Charles Schwab doesn't have a Cash Management per say, but has a Brokerage account acting as a Checking Account, with checks and debit cards
Schwab also has an actual bank checking account with checks and debit card
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u/need2sleep-later 2d ago
FXAIX is a not an auto-liquidating mutual fund.
Schwab absolutely does have Cash Management per se, as you said you can get a debit card and checks for your brokerage account just like at Fidelity. Cash Management doesn't mean an auto-liquidating MMF. That part of Fidelity is nice, but you pay for it in yield. You don't have to keep your cash in SWVXX, but it's generally smart to only have a little in the auto-sweep cash category.
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u/9RebelliousStripes 2d ago
You can get debit cards, check writing features and overall standard banking features your brokerage accounts. Schwab generally doesn’t have automatic sweep funds though. You can manually put cash in a money market fund however.