Across 6 accounts we have 6 cents in the low-yielding FDIC settlement account.
It keeps me on my toes to move any idle to cash to stock/bond or money market positions, but it doesn't happen very often since most holdings are auto-reinvest.
Someone mentioned being out of the T-bill market for a week on rollovers. That does appear to happen with auto-rollover but I manually enter an order for the "correct" corresponding new t-bill (that has a settlement date equal to the maturity date of the old bill) so I don't have that issue.
That takes me about 30 seconds a month.
In short Schwab makes a ton of money from people that are asleep at the wheel with regards to cash management which provides a "free lunch" in terms of low costs and excellent service for everyone else.
It keeps me on my toes to move any idle to cash to stock/bond or money market positions, but it doesn't happen very often since most holdings are auto-reinvest.
Someone mentioned being out of the T-bill market for a week on rollovers. That does appear to happen with auto-rollover but I manually enter an order for the "correct" corresponding new t-bill (that has a settlement date equal to the maturity date of the old bill) so I don't have that issue.
That takes me about 30 seconds a month.
In short Schwab makes a ton of money from people that are asleep at the wheel with regards to cash management which provides a "free lunch" in terms of low costs and excellent service for everyone else.
Statistics: Posted by MnD — Fri Apr 19, 2024 8:41 am