Quote:
Originally Posted by KC911
None of the brokerage's money market funds, etc. have the FDIC protection. I've mentioned brokerage (Fidelity for me) CDs before which offer higher yields, liquidity, and have FDIC protection. I have my parents in them, but I don't currently. Same limits apply though, but through Fidelity you could purchase up to 250K each of JP Morgan, Wells Fargo, Discover, Goldman Sachs, etc. or hundreds of smaller banks' CDs and have it all protected via the FDIC. The yields will beat any other CD offerings even directly from those banks. Link it to your bank/CU account, and it's easy peasy access to higher returns.
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Treasury money market funds are guaranteed by us treasury, the same people that back the FDIC. I think splitting hairs to compare the relative risk.
Your brokerage goes broke you still own your money market fund.
Treasury renegs on its obligations and we're all in it deep.
CD - sure they can be FDIC insured but they aren't liquid. Face value moves with market. CD value will drop as rates continue to climb.
I'm skeptical of the current high yield offers - they're loss leaders to attract customers. At least for the cash I keep the 0.5% difference isn't worth the hassle.